Have a Tax Question? Ask a Tax Expert
Generally tips reported to the employer are placed in box 7, and are also included in boxes 1 and 5. If you fill out the information from the W2 in Turbo tax, you should not have to make any other adjustments, unless you have additional tips to report on your return that you did not report to your employer, and then you would need to use form 4137.
Are these #s from the W2 or a paycheck?
Tips are not taxed at 100 percent. Sometimes when you get paid at a restaurant, most of your wages come from tips, so that the paycheck that you do get have a lot of tax coming out of the hourly wage, but that is to make up for the tips that you received directly outside of your paycheck.
I am sorry that I did not respond to your last inquiry--I never got an email to report your last posting.
The IRS should not be getting extra money. I am unclear as to why your employer would be listing tips as a deduction, and why your employer would be taking tips away from you (this is not standard practice) if you earned them, they should not then be deducted from your hourly pay. You should definitely go back to the employer and ask why they deducted your tips from your pay.