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Wendy Reed
Wendy Reed, Enrolled Agent
Category: Tax
Satisfied Customers: 3346
Experience:  15+ years tax preparation and tax advice.
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what percentage of your tips do you have to claim for income tax

Customer Question

by law do you have to claim every penny you make on tips? example, if my tips were $200.00, but my food sales were only $400.00, do i have to claim the 200, or can i just claim a percentage of my food sales?
Submitted: 10 years ago.
Category: Tax
Expert:  Wendy Reed replied 10 years ago.

By law, you must report all cash and non-cash tips as income. Usually tips are reported to your employer, but if you have not reported your tips to your employer, you must still report them on your return and use Form 4137 for SS and Medicare tax if you received $20 or more in tips in a month from any one job.

If you have any addtional questions, let me know.