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Sunday, 5 June 2011
Mandy asks…Taxable tips?As a server, does the law require that you declare 100% of your tip income? My employer has said to claim 10% of my sales (almost 100%) and I am just curious what the law is. I am not concerned with fudging, I just want to know if employer's have a say, or choose a standard, and what the IRS says.admin answers:Yes you have to claim 100% of your tips, however, any tips totaling under $20 for the month are not subject to social security & medicare. If your tips

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