As a waitress, I am required to tip out other wait staff and the bartenders. This is a substantial amount of the tips earned. Can, and where, can I deduct expenses?

I am required to pay credit card processing fees when a customer uses a credit card. Additionally I have to tip out bartenders at 6% of all alcohol sales and 3% on all food sales to servers and support staff. Where can I show these deductions from my total wages?

2143

Expert Alumni

Feb 1, 2022 1:53:55 PM

Please see this question from MargaretL.

All you have to do is reduce that tip income that you are reporting. For example, if you receive a $1000 tip and give the bartender $250, you only need to report $750 as your tip income.

When you enter your W-2 form, be sure to select the box Unreported Tips when you see the screen Do any of these uncommon situations apply to this W-2... and continue through the prompts. On the Tips Not Reported to (employer name) screen, answer the question about your tips. On the Enter Any Tips You Didn't Report to (employer name) screen, enter the amount of your tips.

This link shows you exactly how to report it... the data entry is immediately after you enter your W-2 form:

Unreported Tips

Level 15

Feb 1, 2022 3:02:49 PM

Your employer is supposed to subtract tipouts from your W-2 for you so you don't have this issue.

Most won't do it.

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As a waitress, I am required to tip out other wait staff and the bartenders. This is a substantial amount of the tips earned. Can, and where, can I deduct expenses?