Affix Salary Form For Free

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Your gross income will be listed on line 7 of your IRS Form 1040. Simply put, your gross earning is the sum total of all of your earnings for the year before taxes and other qualifying expenses, deductions and credits are removed.
If you report your tips to your employer NET of tip outs, they are not included in income, and you cannot deduct them. IRS Publication 517 suggests “If you participate in a tip-splitting or tip-pooling arrangement, report only the tips you receive and retain.
If you fail to report tips to your employer that you are required to report, you may have to pay a penalty of 50% of the Social Security, Medicare, or other taxes owed on those unreported tips.
The law assumes an average tip rate of 8%, and it expects employees to report tips at least 8% of the gross food and drink sales. (The tip rate might be a lower agreed-upon rate.) The reported tip income might be less than 8%.
Use Form 4070, Employee's Report of Tips to Employer, to mark down the amount. Give the form to your employer by the 10th day of the month following the month you received the tips. Your employer will report that taxable tip income on your Form W-2, Wage and Tax Statement, to the IRS.
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