If you get tips on the job, you should know some things about tips and taxes. Here are a few tips from the IRS to help you file and report your tip income correctly:

  • Show all tips on your return. You must report all tips you receive on your federal tax return. This includes the value of tips that are not in cash. Examples include items such as tickets, passes or other items.
  • All tips are taxable. You must pay tax on all tips you received during the year. This includes tips directly from customers and tips added to credit cards. It also includes 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 tips in any one month, you must report your tips for that month to your employer. You should only include cash, check and credit card tips you received. Do not report the value of any noncash tips on this report. Your employer must withhold federal income, Social Security and Medicare taxes on the reported tips.
  • Keep a daily log of tips. Use Publication 1244, Employee's Daily Record of Tips and Report to Employer, to record your tips. This will help you report the correct amount of tips on your tax return.

For more on this topic, see Publication 531, Reporting Tip Income. You can get it on IRS.gov.

Additional IRS Resources:

IRS YouTube Videos:

July 2017
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

July 4 — Everyone
Federal Holiday (Independence Day) Details

July 10 — Employees who work for tips
If you received $20 or more in tips during June, report them to your employer Details

July 10 — Communications and air transportation taxes under the alternative method
Deposit the tax included in amounts billed or tickets sold during the first 15 days of June.

July 14 — Regular method taxes
Deposit the tax for the last 15 days of June.

July 15 — Social security, Medicare, and withheld income tax
If the monthly deposit rule applies, deposit the tax for payments in June.

July 15 — Nonpayroll withholding
If the monthly deposit rule applies, deposit the tax for payments in June.

July 27 — Communications and air transportation taxes under the alternative method
Deposit the tax included in amounts billed or tickets sold during the last 15 days of June.

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

View More Tax Dates