Hi, I have been a bartender for the last 7 years. Looking back I noticed that my employer did not claim all my tips on my W-2. I want to buy a house this year or next. Is it possible to amend my previous 2 year tax returns to claim cash tips? If I can is there a way to prove this to lenders?

Will this proof be usable to show to lenders my actual income?
Amended Tax Return
TaxConnections Members... Answer This Question Want To be One of Our Tax Experts? Register Here

Tax Professional Answers

User Photo
Will Stevens, CPA
You may want to see if your employer will issue corrected W-2s for those years showing the cash tips. You will have to pay tax on the tips and you may be subject to penalties for the late payment of tax and/or under reporting of income. You can amend your tax returns but the IRS may decide to look back at more than just the previous two years that you are amending to see if you had cash tips in those years also. If the IRS finds unpaid tax in prior years they will request that it be paid along with penalties and interest.
Leave a Comment 73 weeks ago

Meet Leading Tax Advisors

User Photo John Stancil

Lakeland, Florida, USA

Tax Advisor/CEO

User Photo Peter J. Scalise

New York, New York, USA

Federal Tax Credits & Incentives Practice Leader

User Photo John Dundon, II EA

Denver, Colorado, USA

Tax Director


View/Select our Current List of Tax Topics

# A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

Previous PageNext Page



Learn from tax advisors, straight to your inbox

Update My Email Address
Contact Us Today