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Level 2
July 31, 2025
Question

Question on declaring tips

  • July 31, 2025
  • 1 reply
  • 0 views

Hello.  My wife is a hairdresser, gets paid bi weekly, and so declares tips bi weekly as well.  

Instead of declaring every two weeks her tip amount, is it possible to do it as a lump sum while I’m preparing for filing at tax time?  We keep all records and amounts.  It, sometimes, is a pain to get her boss to add the tips every two weeks.   When we do miss a bi weekly report of the tips, we just add when doing taxes.  Just wondering if I can do same but for entire year all at once.

 

Al

1 reply

Level 15
July 31, 2025

When you report tips on your return you will be reporting the yearly total. Keep good records to support that amount in case of an audit. 

jager4712Author
Level 2
July 31, 2025

Thanks,  but my question is,  since we declare the tips every two weeks, it is already in there when i start the taxes and part of the W2.  But, seperately, while preparing, TT will ask for ANY undeclared tips which are NOT REPORTED on the W2.

 

My question is, instead of reporting them to our boss every two weeks,  can I just “Lump Sum” the entire year.  That would mean, our tips would NOT show on the W2 and instead be inserted by me one time.    Either way, the same Tip Total will be included, it just changes how and when reported.

 

Al

Level 15
July 31, 2025

Whatever you and your boss decide is fine as long as the tips are accurately reported on your return.