Report Your Tips
Hemet Tax Returns and the IRS is reminding you that if you make more than $20 in tips a month, you need to be reporting them to your employer. Your employer will need to be withholding federal income, Social Security and Medicare taxes from these as wages. Whether it be in the form of cash, tip left on a credit card, tips split with a fellow employee, or even non-cash tips where you will need to report the value of the item.
The IRS has a form, IRS Publication 1244 which is the Employee’s Daily Record of Tips and Report to Employer for you to use to keep a proper record of your tip income.
