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?

[DestroVBlood]

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.

[fanfare]

Your employer is supposed to subtract that for you on your W-2.

[fanfare]

put your tip-outs as a  negative number under Other Income - description "Tip-out not subtracted on W-2"

IRS may accept that.

@DestroVBlood