Deductions & credits


@fanfare wrote:

@Opus 17 

How do you report only the tips you keep if your W-2 (incorrectly) reports you kept all tips.?


There is no official procedure to fix that error.  The taxpayer should first ask their employer for a corrected W-2.  If refused, the taxpayer could attempt to file with a substitute W-2 (form 4852) reporting what they believe to be correct, but they will need proof because the IRS is likely to ask questions.  The correct procedure is that when you report your tips to your employer (there may be a paper log or electronic system) you only report the net you keep after "tip-outs."