skip navigation

Search Help
Navigation Help


Main Topics
A B C D E F G H I
J K L M N O P Q R
S T U V W X Y Z #


FAQs
Forms
Publications
Tax Topics


Comments
About Tax Map

previous page Previous Page: Publication 17 - Your Federal Income Tax - Reporting Tips on Your Tax Return
next page Next Page: Publication 17 - Your Federal Income Tax - Interest Income
 Use previous pagenext page to find additional occurrences of topic items.Index for this Publication
taxmap/pub17/p17-031.htm#en_us_publink100032588

Allocated Tips(p53)


rule
spacer

previous topic occurrence Allocated Tips next topic occurrence

If your employer allocated tips to you, they are shown separately in box 8 of your Form W-2. They are not included in box 1 with your wages and reported tips. If box 8 is blank, this discussion does not apply to you.
taxmap/pub17/p17-031.htm#en_us_publink100032589

What are allocated tips?(p53)


rule
spacer

These are tips that your employer assigned to you in addition to the tips you reported to your employer for the year. Your employer will have done this only if:
taxmap/pub17/p17-031.htm#en_us_publink100032590

How were your allocated tips figured?(p53)


rule
spacer

The tips allocated to you are your share of an amount figured by subtracting the reported tips of all employees from 8% (or an approved lower rate) of food and drink sales (other than carryout sales and sales with a service charge of 10% or more). Your share of that amount was figured using either a method provided by an employer-employee agreement or a method provided by IRS regulations based on employees' sales or hours worked. For information about the exact allocation method used, ask your employer.
taxmap/pub17/p17-031.htm#en_us_publink100032591

Must you report your allocated tips on your return?(p54)


rule
spacer

You must report allocated tips on your tax return unless either of the following exceptions applies. If either exception applies, report your actual tips on your return. Do not report the allocated tips. See What tips to report under Reporting Tips on Your Tax Return, earlier.
taxmap/pub17/p17-031.htm#en_us_publink100032592

How to report allocated tips.(p54)


rule
spacer

If you must report allocated tips on your return, add the amount in box 8 of your Form W-2 to the amount in box 1. Report the total as wages on line 7 of Form 1040. (You cannot file Form 1040EZ or Form 1040A.)
Because social security and Medicare taxes were not withheld from the allocated tips, you must report those taxes as additional tax on your return. Complete Form 4137, and include the allocated tips on line 1 of the form. See Reporting social security and Medicare taxes on tips not reported to your employer under Reporting Tips on Your Tax Return, earlier.
previous pagePrevious Page: Publication 17 - Your Federal Income Tax - Reporting Tips on Your Tax Return
next pageNext Page: Publication 17 - Your Federal Income Tax - Interest Income
 Use previous pagenext page to find additional occurrences of topic items.Index for this Publication