Do you work for tips? Generally, income received as tips is taxable. This includes gratuities received directly from customers, added to credit cards, and received from tip-splitting agreements with other employees. Employees who receive $20 or more in tips in any month must report their tips for the month to their employers. Reporting must take place by the 10th of the next month. To ensure you keep an accurate record of tips to report, check out Publication 1244, “Employee’s Daily Record of Tips and Report to Employer.” Using this to record tips received can help you report the correct amount of tips on your tax returns. Here’s more information. Contact the Cg Team with questions via the form to the right or call 732.676.4100. © 2019
Source:
“Got Tip Income? Here Are Some Tips about Tips from the IRS.” Internal Revenue Service. June 5, 2019. Accessed July 01, 2019. https://www.irs.gov/newsroom/got-tip-income-here-are-some-tips-about-tips-from-the-irs.