Instructions
You must keep sufficient proof to show the
amount of your tip income for the year. A daily
record of your tip income is considered sufficient
proof. Keep a daily record for each workday
showing the amount of cash and credit card tips
received directly from customers or other
employees. Also keep a record of the amount of
tips, if any, you paid to other employees through
tip sharing, tip pooling or other arrangements, and
the names of employees to whom you paid tips.
Show the date that each entry is made. This date
should be on or near the date you received the tip
income. You may use Form 4070A, Employee’s
Daily Record of Tips, or any other daily record to
record your tips.
Reporting tips to your employer. If you receive
tips that total $20 or more for any month while
working for one employer, you must report the
tips to your employer. Tips include cash left by
customers, tips customers add to debit or credit
card charges, and tips you receive from other
employees. You must report your tips for any one
month by the 10th of the month after the month
you receive the tips. If the 10th day falls on a
Saturday, Sunday, or legal holiday, you may give
the report to your employer on the next business
day that is not a Saturday, Sunday, or legal
holiday.
You must report tips that total $20 or more every
month regardless of your total wages and tips for
the year. You may use Form 4070, Employee’s
Report of Tips to Employer, to report your tips to
your employer. See the instructions on the back of
Form 4070.
You must include all tips, including tips not
reported to your employer, as wages on your
income tax return. You may use the last page of
this publication to total your tips for the year.
(continued on inside of back cover)
Your employer must withhold income, social
security, and Medicare (or railroad retirement)
taxes on tips you report. Your employer usually
deducts the withholding due on tips from your
regular wages.
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