Deductions & credits

Tip-outs should not be included in your W-2 amount.  Generally you should be reporting tips to your employer and ONLY reporting the amounts that you keep. ( Gross Tips Less Tip Out. ) Are you saying that your employer takes your tip-out, but includes your gross tips on your W-2?  What about the other employees that receive your tip-outs?  If they are also showing allocated tips on their W-2 equal to tip-outs, than your employer is filing incorrect W-2s.  

If your employer is pulling your tip-outs from your reported tips, they have to reduce your tip income by that amount.  If they are not, you need to tell them to give you a corrected W-2.  You also need to keep records of your take home tips and contact the IRS concerning your incorrect W-2.

You can not change your W-2 but you could claim  this discrepancy on schedule A  IF you qualify to Itemize.  (you may not).  Here is an IRS website with a LOT of good information and additional links.


IRS Tips on Tips

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