Hi guys. I have a question on tips. When some old lady pays me an extra $10 do I need to report it or can I just pocket it? Do I need to rewrite my copy of the bill and pay sales tax on it as well? Thanks!
i didnt see nothing
i record all income whether it is a tip or not, if i charge $100 and they give me $120, i write $120 in my records
IRS says you must record it and pay tax on it.
Yes that is correct what they said.
The simplest answer is, the IRS requires you to report all income.
If your tip is in a check, or CC payment, there is a trail. If you put a cash tip in any of your accounts, there is a trail.
If you happen to find some cash, and put it in your pocket, there is NO trail.
Be careful where you put this in your taxes or you’ll pay even sales tax on it.
only in some states, and i don’t think you would pay sales tax because it’s not for the sale of any goods, it would just be income.
If your in a state that is required to pay sales tax on services and you include tips in that same category it will be calculated as such.
Must know how to categorize various money collected