Reporting Your Tip Income
Lake Elsinore Tax Returns and the IRS are reminding you that if you have tips as part of your earnings, you will need to report them to your employer as well as on your taxes. The IRS has a form, Employer’s Daily Record of Tips and Report to Employer, which can be found on the IRS website. Any tip which comes in cash or credit card addition form along with tips you split with employers and the value of any non-cash tip must be listed on this form.
If these total more than $20 per month, you are required to report them to your employer so federal income, Social Security and Medicare can be deducted from the total.
