Because tips are income, they need to be reported on your tax return. Normally, you would report your tips to your employer, who then includes them on your W-2. Whether included on your W-2 or not, enter your tips in TurboTax with the employer's W-2.
To enter your tips with the employer's W-2:
- Open or continue your return in TurboTax, if you aren't already in it.
- Search for W-2 and select the Jump to link in the search results.
- If that employer's W-2 was already entered on the Here's your W-2 info screen, select Edit next to that employer.
- If you haven't entered that W-2 yet, follow the on-screen instructions or select the Add a W-2 button to add the employer.
- Enter the information from the W-2, if needed, and select Continue at the bottom.
- Continue until you reach the Do any of these uncommon situations apply to this W-2? screen. Check the box for Unreported tips and select Continue.
- On the Now let's enter your unreported tips screen, enter the amount of your tips.