Tracking Tips – Did You Know?

IRS Tracking-Tips-Did-You-Know

Tracking Tips – Did You Know?

For those that work in summer or other jobs that include tipping, the IRS recommends keeping a tips diary so that tips can be accurately reported on your tax return, to your employer, and as proof of tip income.

The IRS provides a Form 4070A (https://www.irs.gov/pub/irs-prior/f4070a–2005.pdf) that can be used as a tip diary, or you can use a notebook to note down for the record:

  • Cash tips you get directly from customers or from other employees.
  • Tips from credit and debit card charge customers that your employer pays you.
  • The value of any noncash tips you get, such as tickets, passes, or other items of value.
  • The amount of tips you paid out to other employees through tip pools or tip splitting, or other arrangements, and the names of the employees to whom you paid the tips.

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