I have to give 20% of my tips which are reported in my income to kitchen staff. How do I deduct this from my reported income?

[Irene2805]

If you are a tipped worker, you are required to report your tips to your employer so you can be assessed the proper taxes.

In the future, you should only report the net amount you receive after tips-out.  If you pay part of your tips to other employees or into a shared pool, only report the amount you actually keep.

Since you reported a higher amount to your employer, you can make an adjustment in Other Income for the tips you paid out. To do this please follow these steps:

You can enter the adjustment as Miscellaneous Income using these steps.

1. Click on Federal > Wages & Income   
2. In the Less Common Income section , click on the Start/Update box next to Miscellaneous Income, 1099-A, 1099-COn the Miscellaneous Income screen, click on the Start/Revisit box next to Other reportable income. 
3. On the Any Other Taxable Income? screen, click the Yes box.
4. Enter the adjustment as a negative number on the Other Taxable Income screen, along with a description.  Click Continue. 
5. This amount will appear on line 8 of the 1040 (Other Income from Schedule 1).