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Tag Archive for Report Tips

Important Tax Dates and Tax Payments, Tax Season Begins (January 2016)

TaxConnections Member Barry Fowler
Individual Due Dates

January 4 – Time to Call For Your Tax Appointment –

January is the beginning of tax season. If you have not made an appointment to have your taxes prepared, we encourage you do so before the calendar becomes too crowded.

January 11 – Report Tips to Employer –

If you are an employee who works for tips and received more than $20 in tips during December, you are required to report them to your employer on IRS Form 4070 no later than January 11.

January 15 – Individual Estimated Tax Payment Due –

It’s time to make your fourth quarter estimated tax installment payment for the 2015 tax year.

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Receiving Tips Can Be Taxing

If you work in an occupation where tips are part of your total compensation, you need to be aware of several facts relating to your federal income taxes:

• Tips are taxable – Tips are subject to federal income, social security, and Medicare taxes. The value of non-cash tips, such as tickets, passes, or other items of value, is also income and subject to taxation.

• Include tips on your tax return – You must include in gross income all cash tips received directly from customers, tips added to credit cards, and your share of any tips received under a tip-splitting arrangement with fellow employees.

• Report tips to your employer – If you receive $20 or more in tips in that month, you should Read more

May 2015 Individual Due Dates

May 11 – Report Tips to Employer

 

If you are an employee who works for tips and received more than $20 in tips during April, you are required to report them to your employer on Internal Revenue Service Form 4070 no later than May 11, 2015. Your employer is required to withhold FICA taxes and income tax withholding for these tips from your regular wages. If your regular wages are insufficient to cover the FICA and tax withholding, the employer will report the amount of the uncollected withholding in box 12 of your W-2 for the year. You will be required to pay the uncollected withholding when your return for the year is filed.

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