Thx for this, but still need help. My daughter's employer/restaurant only reports GROSS tips received (she is a waitress), and reports this on W-2 Line 7. All good. But like most servers, she pays tipouts to other staff - 15% of her tips received. Thus, her W-2 Line 7 is higher than her actual income. When I try to use the Unreported Tip section in TurboTax (which feeds federal W-2 Additional Wage and Tax Information form), I cannot enter a Tips paid out by you (line 10e) unless I ALSO enter additional unreported tip income. The effect of this just adds more tip income before taking it back off....and doesn't lower with is taxable on W-2 Line 7. Suggestions?
