Internal Revenue Service United States Department of the Treasury
Level Basic Advanced Military International

Income

Tip Income

Tip Income

If taxpayers have the type of jobs that normally include income from tips (i.e. waiter/waitress, bellhop, motel/hotel housekeeper, etc.), be sure to ask about any tips they may have received.

All tip income is subject to federal income tax. Individuals who receive $20 or more per month in tips from one job must report their tip income to their employer. Tips that are reported to employers are included in the amount on Form W-2, boxes 1, 5, and 7.

Tip

Self-employed taxpayers should include their tips in gross receipts on Schedule C, for example, self-employed hair stylists and manicurists.

Tip left on restaurant table.
Form 4137

Form 4137