- Tipped employees must report all their income, including cash tips, credit card tips and tips received from a tip-sharing arrangement. Only the money the waiter keeps, however, is reported. For example, if he makes $100 in tips but gives the bartender $10, the waiter reports his tip income as $90.
- The cost of purchasing uniforms for work is sometimes tax-deductible. When the clothing required for work is suitable for wear outside of work, it may not be deducted. For example, a uniform consisting of jeans and a white shirt is not tax-deductible. A uniform consisting of a bright, red-and-white striped vest is tax-deductible if the waiter had to purchase it with his own money. If the waiter must dry-clean the vest, the cost of dry-cleaning is tax-deductible.
- Some states require licensing for waiters; for example, the state of Vermont requires that anybody who serves alcoholic beverages participate in training every two years. Costs and fees related to this job requirement are tax-deductible.
- In some cases, subscriptions to trade journals or other magazines related to work are tax-deductible. If you pay for your own subscription to a journal and it is only for work-related purposes, the cost is probably tax-deductible.
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