Tag Archives: tip income reporting

Here’s what taxpayers need to know about reporting tip income on their tax return

Generally, income received from any source, including tips, is taxable. Here’s some information to help taxpayers report tip income.

All tips that taxpayers receive are income and subject to federal income tax. Taxpayers must include all tips they receive in their gross income. This includes:

  • Tips directly from customers.
  • Tips added using credit cards.
  • Tips from a tip-splitting arrangement with other employees.

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