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You may reduce the amount of your reportable tips if you share some of it with other employees.
For example, if you receive a $125 tip and give the busboy and bartender $35, then you only need to report $90 in tips.
Here is a great article on How to claim your tips.
You may reduce the amount of your reportable tips if you share some of it with other employees.
For example, if you receive a $125 tip and give the busboy and bartender $35, then you only need to report $90 in tips.
Here is a great article on How to claim your tips.
If you are a tipped worker, you are required to report your tips to your employer so you can be assessed the proper taxes.
You only report the net amount you receive after tip-outs. If you pay part of your tips to other employees or into a shared pool, only report the amount you actually keep.
If you report a higher amount to your employer, there is no easy way to fix it on your tax return and you will pay too much income tax, as well as too much social security and medicare tax.
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