I appreciate the responses here. For years I have been told that I don't need to report my tips to my employer. Last year I thought it would help on my taxes if I DID report my tips. So I reported my tips all year long. Then my employer told me that what I reported to her was not included in my W-2 but only the tips that were given online when my customers paid at the front desk. My cash tips were not included. Now I'm reading online that I may pay a penalty for not reporting tips. I'm confused about all of this. Why would Tax services charge me to report unreported tips that will make my return lower and possibly cost me a penalty?
