Tipped Employees � 2021 | Best Guide
Finn Kevin13 May, 2022Business
All tips you receive are income and are subject to federal income tax. You must include in gross income all tips you receive directly, charged tips paid to you by your employer, and your share of any tips you receive under a tip-splitting or tip-pooling arrangement. Reporting your tip income correctly is not difficult. You must do three things. 1) Keep a daily tip record. 2) Report tips to your employer. 3) Report all tips on your income tax return.
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