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ITG FAQ #4 Answer-What are tips of less than $20.00 while working for any one employer subject to?

Tips of less than $20.00, received by an employee during a calendar month while working for a particular employer, are not wages for FICA, FUTA or federal income tax withholding purposes, even though such tips are taxable income to the employee.  The employee is required to report the tip income on the Form 1040 and the Form 4137 for the calendar year that the tip is received.

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Page Last Reviewed or Updated: 20-Nov-2014