Reporting Tips on Your Tax Return Form

Instructions and help about Reporting Tips On Your Tax Return

internal revenue service irs tax news here's what taxpayers need to know about reporting tip income on their tax return irs tax tip 2021-67 may 13 2021 generally income received from any source including tips is taxable so the irs here is talking about tips tips being another area that's of concern to the irs because oftentimes tips are coming directly from customers to an employee or someone providing a service and therefore the customer typically will not be issuing a 1099 and if it's a cash transaction there's going to be very little record of the transaction unlike if it was a credit card or some other transaction and given the fact that it came from a customer you might not have any requirements for the employer to to report it say as income on a w-2 or to 1099 in some way shape or form and the irs is going to say here well tips are still taxable right they want you to report the tips of course because it's still income as income even though it can be a little bit more difficult t