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SEARCHIt would be much more fun to talk about The Academy Awards and who looked the best on the Red Carpet but I think it's time to start turning our attention towards taxes. A little dull, maybe a little scary, but the irs has put a very comprehensive guide together to get you started and to answer your questions.
Believe me, I would rather talk about The Academy Awards and who looked the best on the Red Carpet (George Clooney) but I know it's time to start turning my attention towards taxes. A little dull, maybe, even a little daunting, but the Internal Revenue Service has compiled a very comprehensive guide to get us started and to answer any questions:
If you work at a hair salon,barber shop, casino, golf course,airport, hotel, or perform cleaning,food delivery, or taxi cab services,and receive tips, this guide is for you.
The tip income you receive as an employee from the services such as those listed above — whether cash or included in a charge — is taxable income. As taxable income, these tips are subject to federal income tax, social security and Medicare taxes, and may be subject to state income tax as well.
The Internal Revenue Service (IRS) has prepared this guide to aid the employee who may need answers to tip income reporting questions.
FOLLOW THIS LINK: http://www.irs.gov/pub/irs-pdf/p3148.pdf
Good luck!
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