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Genesisf
New Member

Bets way to declare taxes

I have my first job in US and it’s as a waitress, they pay me with tips and I only have 1 month working in the place, I don’t really know how are going to be my taxes declared. 

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4 Replies
rjs
Level 15
Level 15

Bets way to declare taxes

Do they take any taxes out of what they pay you? Did you fill out a Form W-4? Ask them if you are going to get a W-2 at the end of the year.


Do they pay you in cash or by check? Do you get a pay stub showing how much you were paid?


Do you get the full amount of the tips, or do you have to "tip out" to other workers (share your tips)?

 

Bets way to declare taxes

"I have my first job in US "

 

You did not ask this---but you may need to know---if you are a non-resident alien you will not be able to use TurboTax when the time comes to file your tax return, so before tax time in early January 2024, determine whether you can use TurboTax or if you need to use its partner, sprintax instead.

 

If you are a non-resident alien, your return must be filed on Form 1040NR, which cannot be prepared using TurboTax.  You can use TT’s partner, sprintax:

https://www.sprintax.com/non-resident-alien-tax-1040nr-turbotax.html

**Disclaimer: Every effort has been made to offer the most correct information possible. The poster disclaims any legal responsibility for the accuracy of the information that is contained in this post.**

Bets way to declare taxes

There could be a lot going on here.

 

First, if you are in the US more than half the year, you will be a resident alien and you will file a regular form 1040 tax return.  If you are here less than half the year and are a non-resident, you would file a 1040-NR as mentioned.  (Use the substantial presence test https://www.irs.gov/individuals/international-taxpayers/substantial-presence-test)

 

Even if you are not legal to work, the IRS wants your tax return, and they won't refer you to Immigration.  But if you don't have a social security number valid for work, you will need an ITIN, international tax ID number.  You will apply for the ITIN when you file your first tax return, we can advise you at that time if needed.

 

You say you are paid in tips?  That is probably not legal.  You are probably required to be paid at a least a minimum wage, plus tips.  The minimum wage for servers may be lower than for non-tipped jobs, but it is still required.  

 

As a tipped employee, you are required to report your tips to your employer daily.  Your employer will take taxes out of your paycheck based on your wages plus your tips, and send that to the IRS.  You should be getting a detailed pay stub each week showing your wages, your tips and your taxes.  You should get a W-2 at the end of the year.  Here is more information about the responsibilities of tipped employees.

https://www.irs.gov/businesses/small-businesses-self-employed/tip-recordkeeping-and-reporting

 

If you participate in tip sharing, don't report your total tips, only report the amount you kept.

 

If you are not getting a regular paycheck and pay stub and minimum wage, your employer is breaking the law.   I would find another place to work.  You may also want to file a complaint with your state labor relations board (check your state government web site.). There is a way to file a tax return and pay your taxes without a W-2, but I would rather not discuss it now, unless you really are working under the table and plan to keep it that way. 

rjs
Level 15
Level 15

Bets way to declare taxes


@Opus 17 wrote:

As a tipped employee, you are required to report your tips to your employer daily.


@Genesisf 

 

You are required to report your tips to your employer monthly, or more often if the employer requires it.


"When to Report Tips to Your Employer

 

"Employees must report tips to the employer by the 10th of the month after the month the tips are received. For example, tips received by an employee in August 2020 are required to be reported by the employee to the employer on or before September 10, 2020. . . . An employer may require employees to report tips more than once a month; however, the statement cannot cover a period of more than 1 calendar month."


However, if you are being paid cash "under the table," without a W-2, you are not an employee. The restaurant is treating you as self-employed. In that case you are not required to report your tips to the restaurant, because they are not your employer. The tips are self-employment income. You report it as business income on your tax return.

 

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