Where can I declare negative tips earned? This is the money throughout the year I gave to staff as a tip out. My employer doesn't allow me to do this when I clock out.

I didn't see this as an option or exception for the deductions. Would this be in the employee expense? I am required to tip out roughly 5% of my sales even if I do not get a tip from a customer. I am also taxed on my sales even if I do not receive a tip.

1446

New Member

Jun 4, 2019 12:57:47 PM

It's important that tipped employees keep a log of tips received and tip outs during the year. You should deduct your tips outs from your unreported tips before reporting that amount in TurboTax. If that's not enough to cover the tip outs, go to Federal Taxes>Wages & Income>Less Common Income>Miscellaneous Income>Other Reportable Income. Answer "yes" on the next screen. On the screen after that, enter "Tip Outs." Enter a negative number for the amount of tips outs you paid during the year

Please see IRS Pub 531 for more information. https://www.irs.gov/publications/p531/ar02.html

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Where can I declare negative tips earned? This is the money throughout the year I gave to staff as a tip out. My employer doesn't allow me to do this when I clock out.