Introduction
This publication is for employees who receive tips from customers.
All tips you receive are income and are subject to federal income tax. You must include in gross income all tips you receive
directly from
customers, tips from charge customers that are paid to you by your employer, and your share of any tips you receive under
a tip-splitting or
tip-pooling arrangement.
The value of noncash tips, such as tickets, passes, or other items of value are also income and subject to tax.
Reporting your tip income correctly is not difficult. You must do three things.
-
Keep a daily tip record.
-
Report tips to your employer.
-
Report all your tips on your income tax return.
This publication will show you how to do these three things, and what to do on your tax return if you have not done the first
two. This publication
will also show you how to treat allocated tips.
Comments and suggestions.
We welcome your comments about this publication and your suggestions for future editions.
You can write to us at the following address:
Internal Revenue Service
Individual Forms and Publications Branch
SE:W:CAR:MP:T:I
1111 Constitution Ave. NW
Washington, DC 20224
We respond to many letters by telephone. Therefore, it would be helpful if you would include your daytime phone number,
including the area code, in
your correspondence.
You can email us at
*[email protected]. (The asterisk must be included in the
address.) Please put “
Publications Comment” on the subject line. Although we cannot respond individually to each email, we do appreciate your
feedback and will consider your comments as we revise our tax products.
Tax questions.
If you have a tax question, visit
www.irs.gov or call 1-800-829-1040. We cannot answer tax questions at either
of the addresses listed above.
Ordering forms and publications.
Visit
www.irs.gov/formspubs
to download forms and publications, call 1-800-829-3676, or write to one of the three addresses shown under
How To Get Tax Help in the back
of this publication.
