Okay, bear with me, U.S tax n00b here.
Last year I moved to the states and started to work as a bartender. It's a shady area of taxing since there are tips involved. All my credit card tips were being reported and I was getting them on a paycheck, biweekly. YES, they used to tax my tips (healthcare, state, federal, ss) since it was a big hotel. I rarely had cash tips and if any, there was no report (aaaand it was under $30 bucks anyways). Now what I want to know is if I still owe IRS. I hear that service industry workers are screwed every year.
Is going to H&R block is utterly stupid?
>I hear that service industry workers are screwed every year.
How is it being "screwed" because you have to pay taxes on your income? People who don't make tips declare 100% of their income. Service workers not declaring cash tips are the ones putting the screws to everyone else, not the ones getting screwed.
You technically should put the cash tips down on your income for your tax filing. However, most people dont because fuck the tax man. It should be noted however, that if taxes are already deducted from your check you may be owed money in return depending on your deductions.
Going to H&R Block is utterly stupid, but not because they will screw up your taxes. They do them just fine, they just charge you 5-10x what it's actually worth.
Use an online tax preparer like TurboTax or whatever else. TurboTax is kinda overpriced now too if you have any extra forms but if you qualify for the 1040EZ it's free IIRC.
Or you can just get a paper copy somewhere and do it yourself.
Have to report credit card tips.
Supposed to report cash tips, but holy fuck don't do it. No one will know and no one reports it. Only reason you would report cash tips if you are working for less than minimum wage.