Tipping OUT?

[Possi]

Hey, I have another client (food server) who works with someone who knows so much more about taxes that I do! Don't we just LOVE the friends who know so much??
She keeps track of all her "tips out" when she pays the cook, busboys, helpers, etc, out of her tips.
Did you know you can subtract those totals right off the front of the tax return? Oh, and UNIFORMS, too! yep! right off the front. Been doing it for YEARS!
Doesn't matter that there are no allocated tips on the W2. Doesn't even matter that those tips (tipped out) were not on the W2. Just take 'em right off the front.

Oh baby~~ glad I won't be there for that audit.

~just another ignorant tax preparer~

[JG EA]

Are you sure about the not reported thing? All tips are taxable. If $20 (or less than - didn't look up) in a month the receiver of the tips does not have to report it to their employer, but they still need to put them on thier tax return.

Over that amount and they need to be reported to the employer by the 10th of the next month so they can pay taxes on it. They can take out of that figure tips they give to other people.

But I'm pretty sure you can't take out tips that you haven't claimed!__________________________________________________ ________________________
Oh I just re-read your post and you were being facetious!! Egg on face.