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

Other Taxes Workout

Tip Income

Skills Warm Up: Tip Income

Question 2 of 3

Nancy had a summer job at a coffee hut. She made $18 in tips in May, $755 in June, $600 in July, and $45 in August. She didn't realize she was supposed to report her tips to her employer until a co-worker told her. After that, she reported $1,000 in tips to her boss.

What amount of tips will Nancy have to add to her Form 1040 as wages?

$1,418
$1,000
$418
$18