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My employer reports 100 percent of my tips to the IRS. But I don't take everything home as I tip out my staff about 75-100 a day. Is there a way to ammendment my income?

 
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3 Replies

My employer reports 100 percent of my tips to the IRS. But I don't take everything home as I tip out my staff about 75-100 a day. Is there a way to ammendment my income?

@christianm1234 - you are a W-2 employee? 

rjs
Level 15
Level 15

My employer reports 100 percent of my tips to the IRS. But I don't take everything home as I tip out my staff about 75-100 a day. Is there a way to ammendment my income?

There is no way to deduct tip-outs on your tax return. When you report your tips to your employer, you are supposed to report only the amount you actually kept, after subtracting tip-outs. Then your employer reports only the amount you kept to the IRS. The amount you tipped out should not be included in your W-2. If your W-2 includes the full amount of tips that you received, before subtracting tip-outs, you should ask your employer to issue a corrected W-2 that does not include the amount you tipped out.


You should read IRS Publication 531, Reporting Tip Income, for all the details of how to report tips.

 

My employer reports 100 percent of my tips to the IRS. But I don't take everything home as I tip out my staff about 75-100 a day. Is there a way to ammendment my income?

It is the employer who is supposed to subtract tip-outs from your W-2 gross tips.

Many employers refuse to do this.

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