If your pay from your job includes tips, the IRS has a few important reminders about tip income:

  • Tips are taxable. Individuals must pay federal income tax on any tips they receive. The value of non-cash tips, such as tickets, passes or other items of value are also subject to income tax.
  • Include all tips on your return. You must include all tips that you receive during the year on your income tax return. This includes tips you received directly from customers, tips added to credit cards and your share of tips received under a tip-splitting agreement with other employees.
  • Report tips to your employer. If you receive $20 or more in cash tips in any one month, you must report your tips for that month to your employer. Your employer is required to withhold federal income, Social Security and Medicare taxes on the reported tips.
  • Keep a daily log of tips. You can use IRS Publication 1244, Employee's Daily Record of Tips and Report to Employer, to record your tips.

For more information, see IRS Publication 1244 or Publication 531, Reporting Tip Income. Both are available at IRS.gov or by calling 800-TAX-FORM (800-829-3676).

Additional IRS Resources:

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Upcoming Tax Dates

April 10 (Employees who work for tips)
If you received $20 or more in tips during March, report them to your employer - Details

April 15 (Individuals)
File a 2013 income tax return (Form 1040, 1040A, or 1040EZ) and pay any tax due - Details

April 15 (Household Employers)
If you paid cash wages of $1,800 or more in 2013 to a household employee, you must file Schedule H - Details

April 15 (Individuals)
If you are not paying your 2014 income tax through withholding (or will not pay in enough tax during the year that way), pay the first installment of your 2014 estimated tax. Use Form 1040-ES - Details

April 15 (Partnerships)
File a 2013 calendar year return (Form 1065) - Details

April 15 (Partnerships)
Electing large partnerships: File a 2013 calendar year return (Form 1065-B) - Details

April 15 (Corporations)
Deposit the first installment of estimated income tax for 2014 - Details

April 16 (Everyone)
Federal Holiday (District of Columbia Emancipation Day) - Details

View More Tax Dates