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jeremyh1212
New Member

Im a server in a restuarant. I need to deduct "tip outs" paid to bussers, bartenders, and food runners paid each time i worked. It adds up to $$$Thousands$$$. How?

 
4 Replies
MargaretL
Employee Tax Expert

Im a server in a restuarant. I need to deduct "tip outs" paid to bussers, bartenders, and food runners paid each time i worked. It adds up to $$$Thousands$$$. How?

All you have to do is reduce that tip income that you are reporting. For example, if you receive a $1000 tip and give bartender $250, you only need to report $750 as your tip income. 

When you enter your W-2 form, be sure to select box Unreported Tips when you see the screen Do any of these uncommon situations apply to this W-2... and continue through the prompts. On the Tips Not Reported to (employer name) screen, answer the question about your tips. On the Enter Any Tips You Didn't Report to (employer name) screen, enter the amount of your tips.

This link shows you exactly how to report it... the data entry is immediately after you enter your W-2 form:

https://ttlc.intuit.com/questions/1899731-entering-unreported-tips


If you'd like,  more information on tip income:

https://turbotax.intuit.com/tax-tools/tax-tips/IRS-Tax-Return/How-to-Claim-Tips-on-Your-Tax-Return/I...

champton89
New Member

Im a server in a restuarant. I need to deduct "tip outs" paid to bussers, bartenders, and food runners paid each time i worked. It adds up to $$$Thousands$$$. How?

This isn't regarding tips reported to the employer.  Is the tip out amount going unreported? Your total gross income is including your tip out, correct? What about line 21 is that a box to add total tipout for the year?

fanfare
Level 15

Im a server in a restuarant. I need to deduct "tip outs" paid to bussers, bartenders, and food runners paid each time i worked. It adds up to $$$Thousands$$$. How?

Your employer is supposed to deduct tip-outs on your W-2.

If that is not done, you're on the hook for that tax on that.

champton89
New Member

Im a server in a restuarant. I need to deduct "tip outs" paid to bussers, bartenders, and food runners paid each time i worked. It adds up to $$$Thousands$$$. How?

So there is no way to not pay the tax on the tipped out amount.

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