Legally,how much do servers need to claim?

Question

I have started at a new restaurant and they automatically claim our tips for us. I have always claimed 8-10% in the past but this restaurant is claiming 14%. Does anyone know what the irs would say about this. Thanks

Answer 1

its good to claim everything you make if you don't your not only s******g over the government but yourself in the long run if you continue to serve and want to get a major loan for anything like a house or a car you have no proof of income and they wont give it to you so be honest and it will pay off in the long run even if it makes your check smaller..what do you think the tips are for?

Answer 2

I claim ten percent or more of my sales and I claim all of my credit card tips.

Answer 3

Ah man! I totally did not claim enough and got burned...BAD as did 3 other servers in like 2003...they ended up refiling for me and I owed the IRS like $18,000...I spent a grip on an accountant that had to do amendments...how to avoid? If you have the type of POS system where you can get a record of your check average for the night use that and claim 10% of it. If you don't then what I found to work...after my IRS drama was to claim all of my CC tips...that is how we all got busted in the first place...you can't claim that you only made $50 when you CC tips total $200...so start there...if you have prodominately cash tips then you are in a better spot...I say pick a reasonable number and stay with that average weekly...make sure it fluctuates with how busy the restaurant is...IE: if you are in a restaurant that is super busy in summer because of a patio...don't claim the same amount you did in winter. If none of this makes any sense or seems like too much...just always claim half.

Answer 4

as much as u can

:O)

Answer 5

Legally you have to claim 100% of your tips they are considered income by the IRS. Now I understand that most place don't make you fill out a tip report everytime you work. They just assume you make x% in tips of your sales for the shift.

Answer 6

you should be claiming at least 15% of your total sales for the night.   I hate paying taxes!

Answer 7

They won't say anything here in st.louis they charge 15%.

Answer 8

don't claim anything.  You will have to owe at the end of the year regardless.  The irs would like it.  what they wouldnt like is you not claiming anything, either would the restaurant.  thats why you should do it because f the restaurant and f the irs.

Answer 9

i only claim 10% and never got in trouble. They cant prove anything.