USMCstingray
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yep. In fact the Gov will automatically charge you 10% even if you don't get the full 10%. |
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mickey g
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you are supposed to report everything. |
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chadp10
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lol all tips are taxable but people only report the tips they
get on credit cards because they cheat on there taxes.
Good luck !!!!!!! |
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Greenbay All the Way!!!!!
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no you need to report them, otherwise the irs will come after you for a lot of money. you get most of it back, but claim your tips. its a law too. |
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Alec the Dalek
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Here's how I understand it. Beginning January 1st of this year, restaurants and bar staff are expected to participate in the Attributed Tip Income Program – or ATIP. Instead of waiters, waitresses, and other servers reporting their daily tip amount, restaurant owners would use a formula based on their business’ total food and beverage sales. The estimated total tip income would then go on employee’s W-2 forms.
Hope that helps. I would check this over with your boss, and/or tax consultant for finer details. |
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Gypsy Girl
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You are required to report and pay tax on all tips you receive whether they are in cash or credit card. The reason you were told that you only have to report credit card tips is because cash tips are untraceable and there is no way the IRS can know that you receive them unless you tell them. It is technically fraud, but everyone does it and I've never heard of anyone getting caught. Tips are considered part of your wages. |
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Uncle John
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Tips are income, therefore they should be reported
Because tips in cash are hard to track, many do not report them. Chances are they will not get caught - but it does not make it any less dishonest.
The reason they say to report the credit card tips is because those CAN be tracked and you can be caught if audited.
But all income, according to federal law, must be reported for tax purposes. Even if you are a government contractor, for instrance, and you don't pay taxes - you still have to report your income and file a report, even though you are exempt from taxation. |
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rh
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Your supposed to, im sure not everyone reports the exact amount or at all for that matter. |
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-Tequila9+
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You will be taxed. The method varies from state to state and restaurant to restaurant. Some tax based on your ticket sales. Some tax based on minimum wage. Ask the individual employer.
Now SMILE and table 5 needs water.
Peace. |
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sirmrmagic
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Tip are required to be reported on tax returns,the ones paid on credit cards have a trail,the ones paid in cash do not,no evidence that it was done,but I am not telling you to not report cash tips and tax laws change from time to time..... |
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6'3 and 135lbs
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yes |
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Kerry
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Technically, you are to report all tips. IRS can only verify what was tipped on your credit card receipts, so this is why your employer says to only report those tips. Your employer is trying to "help" you take home more of your tips. |
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Cookie Monster
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EVERYTHING is taxed!
When I was a waitress my wages were less than minimum wage. We just reported total earnings (wages and tips) equal to min wage. |
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Bogie
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Yes, the IRS always gets their cut. I used to report my CC tips plus 8% of my cash tips. But, that was way back when more people used cash. Our rule was report 8% of sales. |
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Overtaxed
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Legally you must report all your tips. The IRS can't account for every tip make, but any tips you get on credit cards can be traced to you. best policy--be honest and declare all your tips. |
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Steve
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All tips are subject to income tax regardless if it is from a cash or credit/debit customer.
When the restaurant is audited, the auditor will review the receipts of the restaurant and make a note of how much the wait staff is tipped by the credit/debit customers. The auditor will then compare the amount of tips reported by the wait staff and see if it is in line with the tips reported for only the credit/debit customers. Any wait staff that has a significant difference will also get audited for under reporting their income.
For example, if the auditor sees that you are averaging 18% of your sales as tips from the credit/debit customers and you only report 12% of your total sales as tips, then you can expect to be audited. |
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trop
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Tips are taxable......Tips done by credit card leave an audit trail, and that is why they told you so.....Does not matter where you live...because States base their Adjusted Gross from the Federal Return AGI....Remember that you are also entitled to deductions....Have your employer deduct a lil more taxes.or you can deposit them quarterly.....Think positive report the income and keep supporting documents for your expenses. |
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stephenweinstein
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All tips are taxable. The law says you must report them all, both cash and credit card. However, many waiters (and your employer) think that the IRS will have difficulty catching someone who illegally reports only the credit card tips and not the cash tips. |
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Dom
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Yes you do. Otherwise your work will report for you 8% of all food and drink sales for the year as your portion. |
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private
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You better check with the other waiters that work "with you."
Uncle Sam knows, who worked there, "before you." <}:-}) |
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buffytou
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ALl income is taxable. If you doubt it, then ask the IRS.
Don't listen to those who say to cheat on your taxes and not report it. They aren't the ones who will have to pay interest and penalties. |
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wildfire78
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Actually you are suppose to report all income when filing your tax return. |
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Non Sequitur
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Yes.
Tips are considered income. The general rule is that if you worked for your money, then it is taxable income. If you didn't work for the money, then it is tax free. Although a tip is called a gratuity, it is not gratuitous like an inheritance.
Legally, you have to report all of your tips. However, as a practical matter, there is only a record of credit card tips, so it is not uncommon for servers to "forget" to report the cash tips. The IRS uses a rule of thumb based on the cost of the meals served, so you want to make sure that you report at least that amount to avoid an audit. |
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quambewy
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Technically you are supposed to but they can't possibly track cash...you do have a min to report...i think its around 5 bucks an hr and most decent waiters make more. |
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I told U VICTORY IS MINE BITCHES
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NO, just be illegal like everyone else. Why claim?
Honestly, you only have to report like 5 bucks a day...When the IRS come for you, don't cry like a wimp....... |
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nice3fishinggal
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Yes you have to report your tips from credit cards because it is considered part of your wages but you don't have to with cash because there is no way for the government to prove how much you made in tips. With credit cards it is in writing |
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Krysia K
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I beleive you have to declare 15% of your sales to be taxable. because your supposed to get 15% tips on what you sell. |
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richard t
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supposed to be 10 percent of salery..can't fake cr card tips........ |
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Alex E
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Anything that goes through a card machine has to be accounted for and is taxed. If its cash and theres no receipt you can basically claim it doesn't exist |
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TTC baby #3
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I am from a small town but no i never did and i waitressed for 5 years. Somehow my boss put some amount into his taxes on what we made. But I never once did. |
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Oops, your account has been susp
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theyre non taxed, your employer wants a portion, screw him. |
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