Yes, you can replace (or adjust) the tips reported on your W-2, but make sure you have a good reason (e.g. records) for the amount of the adjustment.
Unfortunately, if your employer reports your gross tips to the
IRS on Form W-2, i.e. what you received before "tipping out", you
won't be able to easily deduct them from your taxable income. You would have to
keep good records of your tips received and tips paid out, and may still have
to explain the difference to the IRS later in the year.
The following post explains what you need to do to correct this
error.
Unfortunately, many employers do not handle tips correctly
because they report tips gross of tip-outs, which is incorrect. Consequently,
the first question should be, are the tip outs reported in income. They
shouldn't be, as you should report your tips net of tip-outs so they are not on
your Form W-2. If you report your tips to your employer NET of tip outs, they
are not included in income, and you cannot deduct them.
IRS Publication 517 suggests "If you participate in
a tip-splitting or tip-pooling arrangement, report only the tips you receive
and retain. Do
not report to your employer any portion of the tips you receive that you pass
on to other employees." See
also https://www.irs.gov/help-resources/tools-faqs/faqs-for-individuals/frequently-asked-tax-questions-an...
The IRS URL suggests "You must report all tips you received
(including both cash and noncash tips) on your tax return. Even if box 8 of
your Form W-2 contains an amount for allocated tips, you are not required to
report allocated tip income if you did not receive it. But you must be able to
prove the amount of tips you actually received with adequate records. If you do
not have records or have inadequate records, you must report the amount in box
8 as income on your tax return. You cannot deduct any amounts you tipped-out to
other employees from the amount shown in box 8."
As I read that,
if you have an adequate record of your tips, you would report the Box 8 amount
equal to the tips you received, which may not be the amount on your Form W-2.
Future advice: report your tips to your employer
"net" of tip outs and keep an accurate record of tips earned
