How do I file my tipouts as a Bartender?

[stephen-foskey]

I am a server/bartender at Red Robin, and we are required to claim 100% of the tips we receive from guests as part of our income.

However, we are also required to give a percentage of the tips we receive to our support staff (IE. Busser, Food Expo, bartender), which has not been reflected on my tax forms.

I have records of how much I've paid out and to who, over the 2016 tax period.

I only took home about 88% of the tips I was required to claim.

So my question is: How do I make sure I am not paying taxes on that other 12% of tips I was required to claim as income?

[DianeW · Accepted solution]

If your employer was provided the information for the tip-splitting, how much to each person and their name, then those amounts should be on the W2 of the recipient.  You can check with your employer and request a corrected W2 if you are confident you are being taxed on other employees' tips.

For 2017, I have included a link here for you to use to report the tips you received and the amount given to others every day/month.  You can use them daily and then provide a  monthly/weekly total, as required by your employer.

• Form 4070A-Daily Record of Tips

That being said, if you find that you are actually paying tax on tips you did not receive, a deduction for job expenses would be used if you can itemize deductions.  Job expenses fall into a category where the combined total of miscellaneous expenses must be greater than 2% of your adjusted gross income.  The excess can be added to other itemized deductions.  I have provided a quick checklist for you to review.  

I also attached a copy of the standard deduction amounts for most people based on filing status.