doraGM
New Member

My employer reported 8,696 in tips but nowhere does it indicate that I had to tip out a third of that. I have records of my tipouts. How should I proceed?

Our POS system never asked for the tipout amount. 10% went to the bar, 15%-20% to busser, 5% to kitchen. All cash. I regularly had to report $300 in tips when I only took home $200. I knew this would happen so I kept a detailed log of all my tips and tipout. Where should I put in that information?
Carl
Level 15

Get your taxes done using TurboTax

Is your tip income reported in box 8 of your W-2? Or is it all included in box 1?

Did you pay any one person more than $600 of your tip money in 2020?

Typically, box 1 will include all income, and that includes tips. Then box 8 will show the tipout.

 

 

doraGM
New Member

Get your taxes done using TurboTax

Hello! Thank you so much for replying. My income is listed on box 1. My reported tips are listed on box 7. Box 8 is blank. They wouldn't know how much I tipped out because the POS system never asked for tipout amount. I always thought this was weird, but when I brought it to my employer's attention they said it was the right way to do it. As far as I can tell, all the people who received my tipouts (bussers, bartenders, kitchen) never had to report that money. I only worked at that place for 2 and a half months in 2020. Supposedly my wages were 12,600 before taxes. They reported my tips as nearly 8,700. My records show that I only took home $5,500 in tips total.