Waitresses must claim all tips they make on their income tax returns, according to the Internal Revenue Service. The IRS suggests that waitresses paid in tips keep a daily tip diary to keep track of tips and simplify the reporting process. The IRS makes Form 4070A, Employees Daily Record of Tips, available for waitresses to ensure accuracy of tip reporting.Know More
Form 4070A features a fill-in-the-blank format for recording daily tips. To request this form, ask the IRS for Publication 1244. The publication includes an entire year's supply of the form.
Waitresses that do not wish to use Form 4070A can keep their own records or diaries of the tips they receive. Records should include information regarding cash tips received each day, tips from credit or debit cards received, and the value of any noncash tips that are received. Money paid through tip pools or by tip-splitting arrangements should also be reported, notes the IRS.
Waitresses should not write down the service charge that the employer pays, since this is treated as wages, even though it is charged to a customer's bill. To be considered a tip, money must be given to the waitress free from compulsion and be determined by the customer; it cannot be dictated by the employer and the customer can determine who it is given to. Otherwise, it is not a tip under IRS guidelines.Learn more about Salaries
Married couples are able to file joint income tax returns with the IRS and state taxing authorities. As of 2013, joint filing provides married taxpayers with a standard deduction of $12,200, or twice that of individual filers. Another tax benefit of marriage is that it creates a “family partnership” under federal tax laws, which allows the couple to divide business income among family members.Full Answer >
Federal income tax returns are usually due on April 15 each year. It may be extended to the next business day if April 15 is a weekend. Payment of any balance owed to the IRS is also due at this time unless a payment arrangement has been put in place.Full Answer >
Completed and accurate electronic income tax returns are processed by the IRS within 21 days. Paper returns take longer to process, typically six to eight weeks from the date received.Full Answer >
Taxpayers are able to claim student loan interest on income tax returns by deducting it as an adjustment to income, reports the IRS. The IRS sets annual limits on the amount of interest that a qualifying taxpayer can claim in his modified adjusted gross income.Full Answer >