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:

January 2015
S M T W T F S
1 2 3
4 5 6 7 8 9 10
11 12 13 14 15 16 17
18 19 20 21 22 23 24
25 26 27 28 29 30 31

Upcoming Tax Dates

January 1 Everyone
Federal Holiday (New Year's Day) - Details

January 12Employees who work for tips
If you received $20 or more in tips during December, report them to your employer - Details

January 12Communications and air transportation taxes under the alternative method.
Deposit the tax included in amounts billed or tickets sold during the first 15 days of December 2014.

January 14Regular method taxes
Deposit the tax for the last 16 days of December 2014.

January 15Individuals
Make a payment of your estimated tax for 2014 if you did not pay your income tax for the year through withholding (or did not pay in enough tax that way). Use Form 1040-ES - Details

January 15 Farmers & fishermen
Pay your estimated tax for 2014 using Form 1040-ES - Details

January 15 Social security, Medicare, and withheld income tax
If the monthly deposit rule applies, deposit the tax for payments in December 2014

January 15 Nonpayroll withholding.
If the monthly deposit rule applies, deposit the tax for payments in December 2014.

January 20 Everyone
Federal Holiday (Birthday of Martin Luther King, Jr./Inauguration Day) - Details

January 27 Communications and air transportation taxes under the alternative method.
Deposit the tax included in amounts billed or tickets sold during the last 16 days of December 2014.

January 29 — Regular method taxes
Deposit the tax for the first 15 days of January.

View More Tax Dates