How does it work; server and taxes?
Asked by ftpohyeah
I am a first time server and i have no idea how taxes work differently. i have to enter total tip amount when i cash out; what if i enter different amount then my actual tip? and would my tax return be close to nothing next year? so i dont really have to file for my taxes? somebody please break it down for me step by step so i dont mess up with the IRS. thanks

Best Answer:
You HAVE to file taxes, regardless of whether or not you expect a refund or not. That's not how it works. The IRS isn't like an ATM you can go to if you have money in the bank, but ignore when you don't. You have to enter your total tips when you cash out. If you don't, then all of your tips won't be on your W-2 come tax time. Then, if you don't claim them, you're committing a crime called tax evasion. While there are a lot of people in food service who don't report all of their tips, that doesn't make it the correct, right, or even legal thing to do. Be smart and do the right thing. Report all of your tips. Good luck. :0)
I'm an accountant.
Answered by sumbumblebee