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Level 1
posted Apr 8, 2023 4:55:27 PM

Not sure what the field is looking for, for "Total tips you paid out through tip-sharing". Is this my final split, or how much of my total I gave to others?

I do tip-sharing as part of being both a driver and a kitchen staff member.  I don't know if this tax field on this form is looking for how much I received after that split, or if it's asking how much that split gives away to others.  IE, if I do a 70/30 split, do I put in my 70% in this "Total tips you paid out" field, or do I put in the 30% that goes to the rest of the staff?  I'm just confused because the (?) bubble doesn't specify which calculation to put into the field.

0 3 297
3 Replies
Expert Alumni
Apr 8, 2023 5:15:00 PM

The amount that you would enter in the field is the amount that you paid out to the pool that is split among the other employees so in your example it would be 30%. This field is for the tips you received that you did not report to your employer. If all your tips were reported to your employer, do not enter anything in this box. This interview screen is only for tips that were not reported to your employer.

 

 

For more information please review the TurboTax article  When to Use Tax Form 4137: Tax on Unreported Tip Income.

 

Level 1
Apr 8, 2023 5:25:41 PM

So just to clarify, that field is looking for the mentioned hypothetical 30% split?
Sorry, I'm a bit rushed and easily confused on these things.

Expert Alumni
Apr 8, 2023 5:42:57 PM

Yes, this amount would be the hypothetical 30% that you gave to others, the amount that was paid out through tip-sharing.

 

@10flame19ice