Things You'll Need

Instructions

1

Keep a record of all unreported tips for the year. This is for any tips that are not reported to your employer at the end of your shift.
2

Fill out the federal tax form with your name and other personal information. It is important that you enter the correct information.
3

Look under the section titled "Income." This is were you will enter all of your income such as W-2 forms, 1099 forms, taxable interest, dividends and other income you may have to report.
4

Enter your tip money on the line that says, wages, tips and salaries. This of course is only if your employer does not require you to report your tips so that he or she can withhold taxes from this income. See Publication 17 for "Tips" in the References section.
5

Fill out Form 4137 to report any tip money that was not reported to the employer for Social Security and Medicare withholding. You can find a link to the form in the References section. This form will be filed with your federal income tax return. Note:You may owe Social Security and Medicare taxes on this income.