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?

[Vanessa A]

The answer is above by ErnieSO.  

Basically, even though they are tip outs, IF your employer DID include the tips you paid out to others as tip sharing, then you would enter your W-2 and afterwards, you would select Unreported Tips under Lets Check for Uncommon Situations.  

Then you will enter Total Tips that you piad out through tip sharing.  Do NOT include tips on here that were NOT included on your W-2. 

[greatpal]

Do you know then how the tips that are on your w-2, but a portion has been paid out to a tip pool is actually reflected on the tax return?

Thanks!

[greatpal]

The owner will not amend your W-2, You cannot go the IRS, DOL, BBB or the Hague.

How do I reduce my tip income reported on my w-2 on my 1040? 

It cannot be done on IRS Form 4137 because the is only for unreported tips that you received.

I do not think it advisable to enter what is on your w-2 less these payouts.  

I am thinking maybe put on Schedule 1 Line Z, and describe it as maybe redistribution of Tips???

Anyone?  Thanks!

[SusanY1]

There is a way to make an adjustment to your allocated tips, but you must be sure that you have an appropriate and complete log of all tips, such as a tip book, to substantiate the adjustments. 

This is more commonly done for instances where your allocated tips are based on sales but are less than what you actually received, rather than for tip-outs. 

However, the mechanics of adjusting the allocated tips in TurboTax are to adjust the box 8 number in the follow up questions after entering your W-2.  
 

You do not send any tip book/tip log that you have with your return but keep it somewhere that you can easily access it for at least 3 years in case the IRS asks you to support the adjustment.