Waitresses tips and income tax?

[Wiggy Ex]

What is the name of your state? GA

Don't know if I'm on the right board or not, but does anyone know what portion of tips waitresses have to claim on their income taxes?

And how to prove someone makes more than what they claim on income taxes?

 

[JETX]

"Don't know if I'm on the right board or not, but does anyone know what portion of tips waitresses have to claim on their income taxes?"
*** Yes. 100%.

"And how to prove someone makes more than what they claim on income taxes?"
*** Assuming you are not the employer nor the taxpayer, why??
If you do have proof of under-reported income contact the local CIS office of the IRS.

For more, see the following forms:
http://www.irs.gov/pub/irs-pdf/f8027.pdf
http://www.irs.gov/pub/irs-pdf/i8027.pdf
http://www.irs.gov/pub/irs-fill/f941_a.pdf

 

[nremtb]

JETX is correct....you are required to claim 100% of all tip income.

 

[kalypso]

I think that would depend upon where you work and how much you make per hour.. Etc.

I know in the State of Indiana.. if you make 2.13 per hour and you make less than 23.00 in tips per day, you do not need to report that income.....

There are some places that the server must report 18% of all sales as tip income.. it does not matter if they made it or not! (Bad server's really pay for this one!) and all credit card tips are reported in a different manner!

 

[JETX]

I think that would depend upon where you work and how much you make per hour.. Etc.

I know in the State of Indiana.. if you make 2.13 per hour and you make less than 23.00 in tips per day, you do not need to report that income.....

There are some places that the server must report 18% of all sales as tip income.. it does not matter if they made it or not! (Bad server's really pay for this one!) and all credit card tips are reported in a different manner!

*** Sorry, but WRONG!!
1) Even if you were correct, what would Indiana have to do with this issue when the writer is in GEORGIA??
2) The last time I looked Indiana was still in the US. As such, the IRS would regulate what tips to report or not report. Clearly, you are confused and quoting what may apply ONLY to Indiana state taxes.

In the future, please post ACCURATE information relevant to the state jurisdiction.

 

[nremtb]

Some people are often mistaken about how much tip income to report. You may have been told that you only have to claim enough tip income to bring your hourly wage up to the current minimum wage. For example, if you earn an hourly wage of 2.00 per hour, and minimum wage is 5.15 per hour, then the amount of tip income to report would be the difference. However, this is not correct. You must claim ALL tip income you recieve on your Federal Income Taxes. Tip reporting for your state taxes may vary.
The part about reporting a percentage of sales whether you make it or not is also incorrect. Why would you report that you made 50 bucks when you only made 10???? Employers often tell you you must report this way as it benefits the employer. The best thing to do is keep an accurate daily record of all of your sales AND tip income you have. Compare what you have against what your employer actually reports. If you find a discrepancy, and your employer won't stop reporting income you did not recieve, then you'll know you need to contact the proper authorities.