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About Tax Map
IRS Tax Map 2008
Current IRS Tax Map

Frequently Asked Tax Questions

Interest/Dividends/Other Types of Income - Tips


Rev. date: 1/2010


Of my allocated tips, I tip-out 15% to the busboy and 5% to the bar. Where do I deduct this on my tax return?

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Employee's Daily Record of Tips and Report to Employer
Miscellaneous Deductions
previous topic occurrence Reporting Tip Income next topic occurrence
previous topic occurrence Tip, Daily Record next topic occurrence
Tips on Tips - A Guide to Tip Income Reporting for Employees Who Receive Tip Income

You cannot deduct tip-outs (the tips you split with other employees) on your tax return. Nor can you deduct them from your allocated tips:
Tipping-out, by itself, should not cause an allocated tip situation: