How do I calculate what I owe on my tips? TAX TIME.?

I deliver pizzas on my job. I get between $40 and $100 per night in tips. I've never done this before this year 2019. Started job November this year. 

7 Answers

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  • 8 months ago

    The taxman will expect you to keep a record of your tips. Tips are taxable income.

  • 8 months ago

    You keep a record of the tips and then you do schedules C and SE.

  • Eva
    Lv 5
    8 months ago

    You are supposed to be reporting your tips to your employer so they can take the appropriate taxes out of your pay. Your tips are then included on your W2 and you don't have to do anything else.

  • 8 months ago

    You record tips EVERY DAY.

    Legally, you report them to the employer monthly, and they report them as part of your wages on your W-2.

    When I delivered pizza, the first time I gave the boss the monthly reporting form, they literally had no idea what it was.

    I recommend taking your records to a tax professional.

    Note: I actually paid the taxes due, but it is EXTREMELTY common for pizza delivery drivers not to pay taxes on tips.

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  • 8 months ago

    You should report them to your employer who treats them as wages.

  • Anonymous
    8 months ago

    First, you reported all of your tips to your employer, right? If you did, then your W-4 controls withholding and single/1 usually works.

    If you did NOT report the tips to your employer, you have to report them when you file using a 1040 and form 4137. This will calculate the payroll tax 7.65%) you owe, you will also income tax and the IRS can slap you with a 50% penalty (3.83%) for failing to report the tips to your employer.

    Lastly, did your employer reimburse you for your mileage? If they told you that you could deduct it from your taxes, they lied.

  • 8 months ago

    Count your tips daily and write them down in a calendar. Total them up monthly.

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