How to declare tips
Salary & Workers Compensation >How much am I required to declare of my cash tips?
waitinnyc 12:56 PM Oct 29th, 2011
I have a question about what I am required to declare at the end of the night in terms of tips. I work in a restaurant where I hardly receive cash as tips. Most come in form of credit cards, and go on a paycheck that is paid to me weekly. When I do receive tips, those cash tips are supposed to be added to the CC tips, and then tipped out on accordingly to the busser, bartenders, and food runners.
Here's where it gets shady. If I feel like my server assistant didn't do a great job. I dont have to give them the 15% of my tips that the check out sheet says. If I feel like they did great, I can give them more. If I ever tip them in cash, I deduct that from what I declare. I only declare what I walk with CASH wise. because the CC tips are tracked and taxed off my paycheck.
So here's my question. in NYC, how much am I required to declare of my
cash tips? I've heard so many things, and its NOT in my handbook. I've heard "just 15% to keep the IRS off your back", I've heard "if its cash on credit, nothing. " I've always just declared what I made, and now people are saying I'm crazy because I'll get taxed more.
So what its the law. what do I have to declare. I have yet to find a hard print written number on what servers are required to declare. Advice?
AFFA 03:04 PM Oct 29th, 2011
I wish to inform you that all the amounts which you receive as tip must be legally shown in your income. In this, in IRS in its publication Tip Income Reporting had specifically stated that whole of tip income must be reported. The only exception to this rule is when your tip amount in any month is less then $20 then that amount may not be included. Thus, if you do not disclose and if IRS comes to know about the amounts received as tip by you, then IRS may take action. Further, Publication 1244 provides about tip income reporting in Form 4070.
Originally Posted by AFFA :Source: www.worldlawdirect.com