It's important that tipped employees keep a log of tips received and tip outs during the year. You should deduct your tips outs from your unreported tips before reporting that amount in TurboTax. If that's not enough to cover the tip outs, go to Federal Taxes>Wages & Income>Less Common
Income>Miscellaneous Income>Other Reportable Income. Answer
"yes" on the next screen. On the screen after that, enter
"Tip Outs." Enter a negative number
for the amount of tips outs you paid during the year
Please see IRS Pub 531 for more information. https://www.irs.gov/publications/p531/ar02.html
