Tip Compliance and Home buying

Forum|Forum|7 years ago
December 16, 2018
1 reply
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I am a casino dealer who takes home cash tips that does not get reported to the company. The way that my tips are taxed is through "Tip Compliance", which is an agreement with the IRS that sets a predetermined amount on how much I get taxed hourly. In my case it is about $12/hr. This makes it difficult to qualify for housing because on tax returns I make much less than what I actually make. Anyone has any experience with this? Suggestions?

Carl11_2

Employee

an agreement with the IRS that sets a predetermined amount on how much I get taxed hourly

You might want to check that. I'm not familiar with any such agreements. But I would expect it to be a minimum amount each hour, not a hard coded fixed amount. For example, I do know that you are required by law to report all income from all sources unless specifically exempted. So if you make $25 in tips in one hour, the law says you report every penny of it. Whereas I your case if you earn $6 in one hour, then per the agreement you must report $12.

But over an 8 hour shift the minimum would come to $96. Depending on where you're at, (Vegas or NJ) I would expect you to have no problem making more than that in tips in an 8 hour shift, even on a slow day.