I’m a part time pizza delivery driver, I just started 3 months ago. Anyway, My question is should I report my tips when doing my tax returns and does reporting my tips mean I’m going to owe the IRS money?
If you’ve been playing by the rules, you’ve already filed your tips with your employer as the law requires! If you have not, the IRS will be looking for a chunk of extra tax $$$ from you, as well as a 50% penalty on the unpaid Social Security and Medicare taxes.
And yes, the IRS will know that you had tipable income when they see your employer’s name on your W-2 so there’s nearly NO chance of getting away without claiming them!
See the following IRS Pubs and Tax Topics on tips. More information than you ever wanted to know! (And when you’re done reading it, you wish you HAD known in the first place!)
IRS Pub 1244, Employee’s Daily Record of Tips and Report to Employer: http://www.irs.gov/pub/irs-pdf/p1244.pdf
IRS Pub 1872, Tips on Tips – A Guide to Tip Income Reporting for Employees in the Food and Beverage Industry: http://www.irs.gov/pub/irs-pdf/p1872.pdf
IRS Pub 531, Reporting Tip Income: http://www.irs.gov/publications/p531/index.html
Tax Topic 402, Tips: http://www.irs.gov/taxtopics/tc402.html
Edit: PLEASE ignore "gleelogan"! His advice is WRONG and will get you in serious trouble with the IRS. I’ve seen some clueless answers on taxes but his is one of the worst in a while.