Tips included in pay

[AlainaRay]

My employer includes my tips directly into my pay, so on my w2 it’s all one amount. Our payroll dept told us to use the tip amount from our last paystub from last year when doing our taxes with the new tip deductions, but I don’t see anywhere on turbo tax when filing to input the tip amount. Am I missing something? 

[JohnB5677]

Your pay, including tips, is correct.  The deduction comes along further in the TurboTax program.

Log into TurboTax

1. Click on Tax Home on the left sidebar.
2. Select Wages & Income.
3. Review/Edit or select W-2.
4. Enter your Employer ID.
   1. The options for Snap a picture and Upload have step-by-step directions.
   2. You can also select [Type it Myself] at the bottom of the screen.
5. Enter your employer's information.
6. Post the information from the W-2.
7. You may be prompted to double check certain information.
8. A sample of your tax due or refund will be posted for the data you have entered so far.
9. A Let's check for uncommon situations that will come up.
10.  This is where you will post Tips and other uncommon situations.
11. Continue through the interview if any of these apply.
12. This will bring you back to the summary page.

If married, you must file Jointly.

For more information, see the IRS Article covering No Tax on Tips

[AlainaRay]

Ok. So even though my tips are included in my total income for the year, I still list them out separately in that uncommon situation area? 

[JohnB5677]

Yes, that is correct.

The deduction is not on the front of your return.

It is on line 13b of the second page of your 1040.

You can view your 1040 tax return and the supporting three schedules in the online version of TurboTax.

1. On the left menu, scroll down to Tax Tools.
2. If necessary, click the side arrow and select Tools. 
3. A box will appear in the middle of the screen.
4. Select View Tax Summary.
5. A tax summary will appear.
6. On the left side menu bar, select Preview My 1040.
7. This will bring up a copy of your 1040 Tax return.
8. If you continue to scroll down, Schedules 1,2 & 3 are available if they are required.

Some key numbers on the form are:

• Taxable income is line 15
• Total tax is line 24
• Federal Income Tax withheld is line 25d
• Tax credits are listed on 27 - 30
• If there was an underpayment, there may be a penalty
• Refund is posted to line 34
• The amount you Owe is line 37