Previously my employer had included all credit card and cash tips claimed right on my paystub and I was taxed on them throughout the year. My tips were usually more than my wage by the time taxes were taken out. This year the company was audited and they've since made some changes that we do not understand, one being that we were forced to sign off on either being allocated 16% of our sales, or waiving this feature and claiming the tips ourselves with the threat that we will be turned into the IRS for not signing the 16% allocation form. I did not sign the 16% allocation form and chose to keep claiming my tips on my own as I had always done. Fast foreword, now my pay stubs are showing $0.01 in the tips area. I claim hundreds of dollars each week in our Micros system that I expect to be taxed on, yet it's not showing on my stub that I've claimed anything but a penny. What do I do?
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Generally, you must report the tips allocated to you by your employer on your tax return. Since, in your case, your tips are not reflected on your W-2 Box 8. You should be able to run the tips report from MICROS and use that amount. Once you have the tips amount, you will need to report it on your tax return. https://ttlc.intuit.com/replies/6506157
Below is a TurboTax FAQ about tips reporting: Reporting Tips
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