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Important Reminders about Tip Income

-Tips are taxable. You must pay federal income tax on any tips you receive. The value of non-cash tips, such as tickets, passes or other items of
value are also subject to income tax.

-Include all tips on your return. You must include the total of all tips you received during the year on your income tax return.

-Report tips to your employer. If you receive $20 or more in tips in any one month, from any one job, you must report your tips for that month to your employer.

-Keep a daily log of tips.

For more information, check out Internal Revenue Service Issue Number: IRS Tax Tip 2014-16.

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