topic I had a check for $1,171.83 in gross earnings. My hourly pay was $742.80 and Tips were $429.03, however, my net income was $475.19 do I get tips back in my tax return? in State tax filing

I had a check for $1,171.83 in gross earnings. My hourly pay was $742.80 and Tips were $429.03, however, my net income was $475.19 do I get tips back in my tax return?

chrislopez_cl — Fri, 04 Dec 2020 04:51:31 GMT

Re: I had a check for $1,171.83 in gross earnings. My hourly pay was $742.80 and Tips were $429.03, however, my net income was $475.19 do I get tips back in my tax return?

fanfare — Fri, 04 Dec 2020 12:06:02 GMT

your net income does not matter.

your withholding matters (Fed withheld on your pay stub).

You should get that amount back if this is your total income.

Re: I had a check for $1,171.83 in gross earnings. My hourly pay was $742.80 and Tips were $429.03, however, my net income was $475.19 do I get tips back in my tax return?

xmasbaby0 — Fri, 04 Dec 2020 21:21:41 GMT

Was this your first job? In January your employer will give you a W-2 that shows how much you were paid and how much was withheld for taxes, Social Security and Medicare. Here is some information on what a W-2 looks like and what the boxes on it mean. Box 2 will show how much federal tax was withheld. If there is an amount in that box, you can get that back as a tax refund--assuming you did not make more than $12,400 in 2020 if you have any other jobs besides the server job.

You do not get the tips "back." You already received them. You only get back any tax that was withheld in excess of your tax liability.

https://turbotax.intuit.com/tax-tips/irs-tax-forms/what-is-a-w-2-form/L6VJbqWl5

Re: I had a check for $1,171.83 in gross earnings. My hourly pay was $742.80 and Tips were $429.03, however, my net income was $475.19 do I get tips back in my tax return?

Critter-3 — Sat, 05 Dec 2020 11:06:34 GMT

You are a bit confused and the employer may be able to explain it better but here it is ...

On your paycheck there are the wages from the employer + the tips you reported (that you already have in your hand) which gave you the gross taxable income on the paycheck. On that gross federal/state taxes & your half of the FICA taxes are withheld. So the gross taxable income less the taxes that are withheld gives you the net paycheck amount. AND the employer pays their 1/2 of the FICA taxes on your gross income which is good for you. So in the end your spendable cash equals the net paycheck+ the tips you walked home with on the day you earned them.