I am a waiter and share my declared tips with other non wait staff at the restaurant. Can I write off tipouts to other employees?
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1 Replies
Coleen3
Intuit Alumni
Jun 3, 2019 11:53:00 AM
Unfortunately, no.
Question
My Form W-2 shows allocated tips in box 8. I tip out 15% of all my tips to the busser and 5% to the bartender. Do I deduct the tipped-out amounts from the amount in box 8 when I report it on my income tax return?
Answer
No, you can't deduct tip-outs (the portion of your tips you give to indirectly tipped employees, such as bussers and service bartenders) from allocated tips when you report the allocated tips on your income tax return.
If your employer allocated tips to you, the allocated tips are shown in box 8 of your Form W-2, Wage and Tax Statement. The allocated tips aren't included in box 1 with your wages and reported tips.