How do I report cash tips? [PH]


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PostPosted: Tue Jan 05, 2016 10:41 pm
I've been just reporting my charge tips as advised by a peer and told me there's no need for reporting cash tips but I've been reading that the IRS estimates how much tip you make and tax you for it. So my question is, what is the norm of reporting tips at the end of your shift? I've been keeping records of all my tips, reimbursements, gas cost, repair costs, mileage, and etc. I worked about a 6 weeks last year (2015) and I just finished my first week of the new year, I'd like to know how to properly report tips.

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PostPosted: Wed Jan 06, 2016 4:13 am
Kangmk wrote:I've been just reporting my charge tips as advised by a peer and told me there's no need for reporting cash tips but I've been reading that the IRS estimates how much tip you make and tax you for it. So my question is, what is the norm of reporting tips at the end of your shift? I've been keeping records of all my tips, reimbursements, gas cost, repair costs, mileage, and etc. I worked about a 6 weeks last year (2015) and I just finished my first week of the new year, I'd like to know how to properly report tips.


Well let me start by answering the question you posed in your title: "How do I report cash tips?"

I would guess that PH has a way for you to do this on each delivery and/or you can report additional tips at your checkout. Otherwise you can educate yourself on how the IRS expects you to do this.

I don't keep a daily record, but I report my tips at the end of the shift. That means that when I checkout/logout I report an additional amount above and beyond the amount that is automatically reported due to credit cards or accounts. I also retain a copy of my checkout report, a document showing all my delivery activities, at the end of each shift.

I hope this was helpful, if it was not let me know and we can talk some more about it.
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PostPosted: Wed Jan 06, 2016 7:38 pm
Your peer advised you incorrectly. You are REQUIRED to report all tips. If your management team doesn't know how, I advise you to contact your next level up (store manager or regional manager) and ask them.

You can wait and claim them on your income taxes, but be prepared to possibly lose your refund or maybe owe more taxes.

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PostPosted: Wed Jan 06, 2016 9:37 pm
tompace wrote:Your peer advised you incorrectly. You are REQUIRED to report all tips. If your management team doesn't know how, I advise you to contact your next level up (store manager or regional manager) and ask them.

You can wait and claim them on your income taxes, but be prepared to possibly lose your refund or maybe owe more taxes.


Crap!! Thanks for pointing that out, I totally forgot about that eventuality.

I understand that some, many, most, I don't know, delivery drivers probably don't report all their tips, that's on them and I think it's stupid of them for many reasons.

If you have not been reporting those tips, I would suggest you start doing so from here on out.
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PostPosted: Thu Jan 07, 2016 1:19 pm
I report all of mine, for a couple reasons:

A) First and foremost, its illegal to do otherwise and I can't afford an IRS audit/penalization.
B) Reporting all tips inflates your provable wealth, which helps with getting a loan, or (god forbid) in the case of disability/workman's compensation.

Yes, I do have a SLIGHTLY smaller check, but the difference is negligible. I automatically have a smaller check anyway because I have my tax situation set to single, even though I am not and actually have a dependent. So /shrug.

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PostPosted: Wed Jan 27, 2016 9:38 pm
sorry for my english...
can you show me in some example how can IRS count my estimated cash tips.
for example:
35 000 of wages
including 9500 of card tips.
these datas are all in my W2
and I really don't know the amount of my cash tips, but would like to report it.

thank you very much.

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PostPosted: Fri Jan 29, 2016 12:19 am
texas1973 wrote:sorry for my english...
can you show me in some example how can IRS count my estimated cash tips.
for example:
35 000 of wages
including 9500 of card tips.
these datas are all in my W2
and I really don't know the amount of my cash tips, but would like to report it.

thank you very much.

If you have not been keeping track of your cash tips, I would suggest you not try to make up some number now. I'm not saying this so you can avoid paying your taxes, only because you could cause yourself more trouble by now reporting your tips.

I would further suggest that if you decide to report your cash tips in the future, keep a log of each tip you receive, I've already linked to the IRS on how to do this.

https://www.irs.gov/publications/p531/ar02.html
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