I am a server. My taxes are reporting 100% of my tips. But I pay back 3-3.5% of my total gross sales as a tip out back to the employer Is there a way to deduct that?
This fee goes to pay 2% to bartenders, 1% to hosts, and 0.5% to hosts. This causes me to pay others money that they are being taxed on as well.
02397
2 Replies
fanfare
Level 15
Feb 10, 2023 4:33:54 AM
Your employer is supposed to subtract that for you on your W-2.
fanfare
Level 15
Feb 10, 2023 4:53:48 AM
put your tip-outs as a negative number under Other Income - description "Tip-out not subtracted on W-2"