Archive for the ‘Record Keeping’ Category

Four Tax Tips about Tip Income

by P. Lewis Robinson
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Jan
21

If you work in an occupation where tips are part of your total compensation, you need to be aware of several facts relating to your federal income taxes. Here are four things the IRS wants you to know about tip income:

  1. Tips are taxable. Tips are subject to federal income, Social Security and Medicare taxes. The value of non–cash tips, such as tickets, passes or other items of value, is also income and subject to tax.
  2. Include tips on your tax return. You must include in gross income all cash tips you receive directly from customers, tips added to credit cards, and your share of any tips you receive under a tip–splitting arrangement with fellow employees.
  3. Report tips to your employer. If you receive $20 or more in tips in any one month, you should report all of your tips to your employer. Your employer is required to withhold federal income, Social Security and Medicare taxes.
  4. Keep a running daily log of your tip income. You can use IRS Publication 1244, Employee’s Daily Record of Tips and Report to Employer, to record your tip income.

For more information see IRS Publication 531, Reporting Tip Income and Publication 1244 which are available at http://www.irs.gov or can be ordered by calling 800-TAX-FORM (800-829-3676)

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Keeping Good Records Reduces Stress at Tax Time

by P. Lewis Robinson
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Aug
24

You may not be thinking about your tax return right now, but summer is a great time to start planning for next year and to make sure your records are organized.  Maintaining good records now can make filing your return a lot easier and it will help you remember transactions you made during the year.

Here are a few things the IRS wants you to know about recordkeeping. (more…)

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Five Tips for Great Record-Keeping

by P. Lewis Robinson
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Apr
27

There are many records you have that may help document items on your tax return. You’ll need this documentation should the IRS select your return for examination. Here are five tips from the IRS about keeping good records.

  1. Normally, tax records should be kept for three years. (more…)
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12/31/07 – How Long Should I Keep Records?

by P. Lewis Robinson
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Dec
9

Although legally you need only keep tax records for three years from the date you filed the related income tax return, you should keep a copy of your actual tax returns, W-2s, 1099s, etc., indefinitely. The IRS destroys original tax returns after three years, and you or your heirs may need information from the returns at some point, or you may need to prove your earnings for Social Security purposes.

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