Occupational Deductions

Though some expenses may be deductible in a number of occupations, most occupations have a blend of expenses unique to that field, and the majority of taxpayers incur deductible expenses related to their occupations. In this section you will find details on the deductible expenses applicable to some common occupations.

Airline and Flight Crew Personnel

Continuing Education:
Educational expenses are deductible only if it is a requirement for you to keep your job or rate of pay or it maintains or improves your skills in your profession. The cost of courses that are taken to meet the minimum requirements of a job or that qualify you for a new trade or business are not deductible.

Professional Fees and Dues:
Dues paid to unions and professional societies, including trade associations, business leagues, professional organizations, boards of trade, chambers of commerce, and civic organizations related to your profession are deductible. Dues paid for memberships in organizations for social or recreational purposes, including golf and athletic clubs, country clubs, and airline clubs are non-deductible.

Uniforms and Upkeep Expenses:
IRS rules specify that the cost of and maintenance of work clothing are deductible only if the uniforms are required by your employer and the clothes are not adaptable to ordinary street wear. Normally, the employer’s emblem attached to the clothing indicates it is not for street wear.

Auto Travel:
This is based on the number of qualified miles you drive, including travel between business locations or daily transportation expenses between your residence and temporary work locations. Daily trips between home and your primary work location are commuting expenses and are non-deductible.

Out-of-Town Travel:
Expenses accrued when traveling away from home (referring to the city or general region where your principal place of employment is located) overnight on job-related and continuing education trips are deductible. Possible expenses include meals, lodging, transportation, tips, and miscellaneous items like laundry, valet, etc.

Communication Expenses:
The costs of a second line (basic service and toll calls) in your home are deductible if that line is used exclusively for business. Basic local telephone service costs on a first line are non-deductible, but toll calls from that line are deductible if the calls are business related.

Equipment & Supplies:
To be deductible, items must be ordinary and necessary to your job and not reimbursable by your employer. Record separately from other supplies the costs of business assets that are expected to last longer than one year and cost more than $100.00. Normally, the costs of such assets are recovered differently on your tax return than are other recurring, everyday business expenses.

Miscellaneous Expenses:
You may include expenses of looking for new employment in the same line of work in which you are already working as deductions. You don’t have to actually obtain a new job in order to deduct the expenses. Job seeking expenses out-of-town are deductible only if the primary purpose of the trip is job seeking.

Business Professionals

Continuing Education:
Educational expenses are deductible only if it is a requirement for you to keep your job or rate of pay or it maintains or improves your skills in your profession. The cost of courses that are taken to meet the minimum requirements of a job or that qualify you for a new trade or business are not deductible.

Professional Fees and Dues:
Dues paid to unions and professional societies, including trade associations, business leagues, professional organizations, boards of trade, chambers of commerce, and civic organizations related to your profession are deductible. Dues paid for memberships in organizations for social or recreational purposes, including golf and athletic clubs, country clubs, and airline clubs are non-deductible.

Uniforms and Upkeep Expenses:
IRS rules specify that the cost of and maintenance of work clothing are deductible only if the uniforms are required by your employer and the clothes are not adaptable to ordinary street wear. Normally, the employer’s emblem attached to the clothing indicates it is not for street wear.

Auto Travel:
This is based on the number of qualified miles you drive, including travel between business locations or daily transportation expenses between your residence and temporary work locations. Daily trips between home and your primary work location are commuting expenses and are non-deductible.

Out-of-Town Travel:
Expenses accrued when traveling away from home (referring to the city or general region where your principal place of employment is located) overnight on job-related and continuing education trips are deductible. Possible expenses include meals, lodging, transportation, tips, and miscellaneous items like laundry, valet, etc.

Communication Expenses:
The costs of a second line (basic service and toll calls) in your home are deductible if that line is used exclusively for business. Basic local telephone service costs on a first line are non-deductible, but toll calls from that line are deductible if the calls are business related.

Equipment & Supplies:
To be deductible, items must be ordinary and necessary to your job and not reimbursable by your employer. Record separately from other supplies the costs of business assets that are expected to last longer than one year and cost more than $100.00. Normally, the costs of such assets are recovered differently on your tax return than are other recurring, everyday business expenses.

Miscellaneous Expenses:
You may include expenses of looking for new employment in the same line of work in which you are already working as deductions. You don’t have to actually obtain a new job in order to deduct the expenses. Job seeking expenses out-of-town are deductible only if the primary purpose of the trip is job seeking.

Clergy

Parsonage Allowance:
Many clergy members are paid a “housing allowance,” which they use to pay the expenses related to their homes. Alternatively, some may live in a parsonage owned by the church. Neither the cash allowance nor the estimated rental value of the parsonage is counted as income for the purpose of computing your income tax. They are, however, included in your income for the purpose of determining your self-employment tax. It is very important that the governing body of your church designate the portion of your salary that is your housing allowance in order to comply with IRS regulations.

Communication Expenses:
Toll calls made from your home related to church business are deductible if the expenses aren’t reimbursable to you. To be assured of a deduction, clearly mark your monthly phone bill to show the business calls. Since there are special rules for cellular telephones and similar items (called “listed property” in the tax law), it is important to track their business and personal use carefully. Such property potentially qualifies for larger current deductions when it’s used more than 50% for business. Keep your bills for the cellular phone and, again, mark business calls.

Auto Travel:
This is based on the number of qualified miles you drive, including travel between business locations or daily transportation expenses between your residence and temporary work locations. Daily trips between home and your primary work location are commuting expenses and are non-deductible.

Out-of-Town Travel:
Expenses accrued when traveling away from home (referring to the city or general region where your principal place of employment is located) overnight on job-related and continuing education trips are deductible. Possible expenses include meals, lodging, transportation, tips, and miscellaneous items like laundry, valet, etc.

Communication Expenses:
The costs of a second line (basic service and toll calls) in your home are deductible if that line is used exclusively for business. Basic local telephone service costs on a first line are non-deductible, but toll calls from that line are deductible if the calls are business related.

Continuing Education:
Educational expenses are deductible only if it is a requirement for you to keep your job or rate of pay or it maintains or improves your skills in your profession. The cost of courses that are taken to meet the minimum requirements of a job or that qualify you for a new trade or business are not deductible.

Equipment Purchases:
Equipment purchases such as pagers or answering machines are shown differently on your tax return than general job-related supplies. Keep documentation for these items separate from everyday expenses so that they can be easily identified when your return is prepared.

Day Care Providers

Auto Travel:
Your auto expenses are based on the number of qualified business miles you drive. As a day care provider you may include your transportation:

to and from a class taken to enhance your skills;
on field trips with the children you care for;
on errands related to your business;
to the store to shop for supplies; or
when chauffeuring day care attendees.

Business Use of Home:
Normally the expenses you incur related to your personal home are non-deductible. However, when you regularly use your home for licensed day care, a portion of the cost of your home upkeep can be deductible depending on both the amount of time you routinely use various rooms of your home in the day care business and the number of square feet you use for day care.

Capital Purchases:
Some purchases may be referred to as “capital items.” Capital items are those that normally last more than one year and cost more than $100.00 such as cribs and playground equipment. Capital items are deducted according to different rules than those used for supplies and expenses, so be sure to keep receipts for these items separate from receipts for general supplies.

Supplies and Expenses:
Generally, to be deductible, items must be ordinary and necessary to the operation of your day care business. Record separately from other supplies the costs of business assets that are expected to last longer than one year and cost more than $100. Normally, the costs of such assets are reported differently on your tax return than are other recurring, everyday business expenses like small toys or books. Try to get separate store receipts for the items you use for day care. For example, if you buy food for the day care attendees, don’t combine this purchase with the food purchases for personal use.

Educators

Auto Travel:
This is based on the number of qualified miles you drive, including travel between business locations or daily transportation expenses between your residence and temporary work locations. Daily trips between home and your primary work location are commuting expenses and are non-deductible.

Classroom Supplies:
In order to be deductible, items must not be reimbursable by your employer and must be ordinary and necessary to your profession as an educator. These items must be recorded on your tax return differently than other recurring business expenses such as books or photocopies. Record items costing more than $100.00 and having a useful life of more than one year separately from other supplies.

Communication Expenses:
The costs of a second line (basic service and toll calls) in your home are deductible if that line is used exclusively for business. Basic local telephone service costs on a first line are non-deductible, but toll calls from that line are deductible if the calls are business related.

Continuing Education:
Educational expenses are deductible only if it is a requirement for you to keep your job or rate of pay or it maintains or improves your skills in your profession. The cost of courses that are taken to meet the minimum requirements of a job or that qualify you for a new trade or business are not deductible.

Professional Fees and Dues:
Dues paid to unions and professional societies, including trade associations, business leagues, professional organizations, boards of trade, chambers of commerce, and civic organizations related to your profession are deductible. Dues paid for memberships in organizations for social or recreational purposes, including golf and athletic clubs, country clubs, and airline clubs are non-deductible.

Out-of-Town Travel:
Expenses accrued when traveling away from home (referring to the city or general region where your principal place of employment is located) overnight on job-related and continuing education trips are deductible. Possible expenses include meals, lodging, transportation, tips, and miscellaneous items like laundry, valet, etc.

Miscellaneous Expenses:
You may include expenses of looking for new employment in the same line of work in which you are already working as deductions. You don’t have to actually obtain a new job in order to deduct the expenses. Job seeking expenses out-of-town are deductible only if the primary purpose of the trip is job seeking.

Entertainers

Continuing Education:
Educational expenses are deductible only if it is a requirement for you to keep your job or rate of pay or it maintains or improves your skills in your profession. The cost of courses that are taken to meet the minimum requirements of a job or that qualify you for a new trade or business are not deductible.

Promotional Expenses & Supplies:
To be deductible, items must be ordinary and necessary to your job and not reimbursable by your employer. Record separately from other supplies the costs of business assets that are expected to last longer than one year and cost more than $100 .Normally, the costs of such assets are recovered differently on your tax return than are other recurring, everyday business expenses.
If you incur expenses while looking for a job in your entertainment field, they may be deductible. You do not actually have to obtain a new job in order to deduct the expenses. Out-of-town job-seeking expenses are deductible only if the main purpose of the trip is to job search, not pursue personal activities.

Auto Travel:
This is based on the number of qualified miles you drive, including travel between business locations or daily transportation expenses between your residence and temporary work locations. Daily trips between home and your primary work location are commuting expenses and are non-deductible.

Out-of-Town Travel:
Expenses accrued when traveling away from home (referring to the city or general region where your principal place of employment is located) overnight on job-related and continuing education trips are deductible. Possible expenses include meals, lodging, transportation, tips, and miscellaneous items like laundry, valet, etc.

Communication Expenses:
The costs of a second line (basic service and toll calls) in your home are deductible if that line is used exclusively for business. Basic local telephone service costs on a first line are non-deductible, but toll calls from that line are deductible if the calls are business related.

Equipment Purchases:
Equipment purchases such as musical instruments or answering machines are recorded on your return differently than general job-related supplies. Keep documentation for these items separate from everyday expenses so that they can be easily identified when you prepare your return.

Firefighters

Communication Expenses:
The costs of a second line (basic service and toll calls) in your home are deductible if that line is used exclusively for business. Basic local telephone service costs on a first line are non-deductible, but toll calls from that line are deductible if the calls are business related.

Continuing Education:
Educational expenses are deductible only if it is a requirement for you to keep your job or rate of pay or it maintains or improves your skills in your profession. The cost of courses that are taken to meet the minimum requirements of a job or that qualify you for a new trade or business are not deductible.

Professional Fees and Dues:
Dues paid to unions and professional societies, including trade associations, business leagues, professional organizations, boards of trade, chambers of commerce, and civic organizations related to your profession are deductible. Dues paid for memberships in organizations for social or recreational purposes, including golf and athletic clubs, country clubs, and airline clubs are non-deductible.

Uniforms and Upkeep Expenses:
IRS rules specify that the cost of and maintenance of work clothing are deductible only if the uniforms are required by your employer and the clothes are not adaptable to ordinary street wear. Normally, the employer’s emblem attached to the clothing indicates it is not for street wear, and firefighter’s uniform are within this provision. The costs of your uniforms are fully deductible, as is the cost of protective clothing such as goggles and boots.

Equipment & Repairs:
To be deductible, items must be ordinary and necessary to your job and not reimbursable by your employer. Normally, the costs of such assets are recovered differently on your tax return than are other recurring, everyday business expenses such as flashlights, batteries and other supplies. Record separately from other supplies the costs of business assets that are expected to last longer than one year and cost more than $100.00.

Auto Travel:
This is based on the number of qualified miles you drive, including travel between business locations or daily transportation expenses between your residence and temporary work locations. Daily trips between home and your primary work location are commuting expenses and are non-deductible.

Out-of-Town Travel:
Expenses accrued when traveling away from home (referring to the city or general region where your principal place of employment is located) overnight on job-related and continuing education trips are deductible. Possible expenses include meals, lodging, transportation, tips, and miscellaneous items like laundry, valet, etc.

Miscellaneous Expenses:
You may include expenses of looking for new employment in the same line of work in which you are already working as deductions. You don’t have to actually obtain a new job in order to deduct the expenses. Job seeking expenses out-of-town are deductible only if the primary purpose of the trip is job seeking.

Medical Professionals

Supplies & Expenses:
To be deductible, items must be ordinary and necessary to your medical profession and not reimbursable by your employer. Record separately from other supplies the cost of business assets that are expected to last longer than one year and cost more than $100. Normally, the cost of such assets are recovered differently on your tax return than are other recurring, everyday business expenses such as business cards or medical supplies.

Miscellaneous Expenses:
You may include expenses of looking for new employment in the same line of work in which you are already working as deductions. You don’t have to actually obtain a new job in order to deduct the expenses. Job seeking expenses out-of-town are deductible only if the primary purpose of the trip is job seeking.

Uniforms and Upkeep Expenses:
IRS rules specify that the cost of and maintenance of work clothing are deductible only if the uniforms are required by your employer and the clothes are not adaptable to ordinary street wear. Normally, the employer’s emblem attached to the clothing indicates it is not for street wear.

Communication Expenses:
The costs of a second line (basic service and toll calls) in your home are deductible if that line is used exclusively for business. Basic local telephone service costs on a first line are non-deductible, but toll calls from that line are deductible if the calls are business related.

Continuing Education:
Educational expenses are deductible only if it is a requirement for you to keep your job or rate of pay or it maintains or improves your skills in your profession. The cost of courses that are taken to meet the minimum requirements of a job or that qualify you for a new trade or business are not deductible.

Auto Travel:
This is based on the number of qualified miles you drive, including travel between business locations or daily transportation expenses between your residence and temporary work locations. Daily trips between home and your primary work location are commuting expenses and are non-deductible.

Professional Fees and Dues:
Dues paid to unions and professional societies, including trade associations, business leagues, professional organizations, boards of trade, chambers of commerce, and civic organizations related to your profession are deductible. Dues paid for memberships in organizations for social or recreational purposes, including golf and athletic clubs, country clubs, and airline clubs are non-deductible.

Out-of-Town Travel:
Expenses accrued when traveling away from home (referring to the city or general region where your principal place of employment is located) overnight on job-related and continuing education trips are deductible. Possible expenses include meals, lodging, transportation, tips, and miscellaneous items like laundry, valet, etc.

Overnight Drivers

Out-of-Town Travel:
Expenses accrued when traveling away from home (referring to the city or general region where your principal place of employment is located) overnight on job-related and continuing education trips are deductible. Possible expenses include meals, lodging, transportation, tips, and miscellaneous items like laundry, valet, etc.

Office Expenses:
Use this section to record miscellaneous expenses of supplies and services you are responsible for when you are on the road. For example, you may be required to fax or mail an important document back to your home office; such expenses are deductible if they are not reimbursed by your employer.

Supplies:
Items must be ordinary and necessary to your job and not reimbursable by your employer. Record items costing more than $100 and having a useful life of more than one year separately from other supplies. These items must be reported differently on your tax return than recurring everyday business expenses such as maps.

IRS rules specify that expenses for work clothing and its maintenance are deductible if the uniform is required by your employer and is not adaptable to ordinary street wear. Your uniform may be deductible.

Communication Equipment:
It’s important to track their business and personal use of cell phones carefully since special rules apply to deductions for these and similar items. Cell phones and other listed items may qualify for larger current deductions when they are used more than 50% of the time for business. Keep your bills for cellular phone use and mark all business calls.

Fees & Dues:
Union or other professional dues are deductible. Any portion of the union payments that goes into a strike fund is deductible, although amounts paid to a union that are meant to go toward defraying your personal expenses are not.

Miscellaneous Expenses:
If you look for a job in the same line of work, you may deduct the expenses. Such expenses could include mileage to interviews, resume preparation, or even out-of-town expenses so long as the trip is primarily for job-seeking and not personal reasons.

Peace Officers

Communication Expenses:
The costs of a second line (basic service and toll calls) in your home are deductible if that line is used exclusively for business. Basic local telephone service costs on a first line are non-deductible, but toll calls from that line are deductible if the calls are business related.

Continuing Education:
Educational expenses are deductible only if it is a requirement for you to keep your job or rate of pay or it maintains or improves your skills in your profession. The cost of courses that are taken to meet the minimum requirements of a job or that qualify you for a new trade or business are not deductible.

Professional Fees and Dues:
Dues paid to unions and professional societies, including trade associations, business leagues, professional organizations, boards of trade, chambers of commerce, and civic organizations related to your profession are deductible. Dues paid for memberships in organizations for social or recreational purposes, including golf and athletic clubs, country clubs, and airline clubs are non-deductible.

Uniforms and Upkeep Expenses:
IRS rules specify that the cost of and maintenance of work clothing are deductible only if the uniforms are required by your employer and the clothes are not adaptable to ordinary street wear. Your employer’s emblem attached to the clothing indicates it is not for street wear. The costs of your uniforms are fully deductible.

Equipment & Repairs:
To be deductible, items must be ordinary and necessary to your job and not reimbursable by your employer. Normally, the costs of such assets are recovered differently on your tax return than are other recurring, everyday business expenses such as flashlights, batteries and other supplies. Record separately from other supplies the costs of business assets that are expected to last longer than one year and cost more than $100.00.

Auto Travel:
This is based on the number of qualified miles you drive, including travel between business locations or daily transportation expenses between your residence and temporary work locations. Daily trips between home and your primary work location are commuting expenses and are non-deductible.

Out-of-Town Travel:
Expenses accrued when traveling away from home (referring to the city or general region where your principal place of employment is located) overnight on job-related and continuing education trips are deductible. Possible expenses include meals, lodging, transportation, tips, and miscellaneous items like laundry, valet, etc.

Miscellaneous Expenses:
You may include expenses of looking for new employment in the same line of work in which you are already working as deductions. You don’t have to actually obtain a new job in order to deduct the expenses. Job seeking expenses out-of-town are deductible only if the primary purpose of the trip is job seeking.

Generally, meals consumed during hours of duty by peace officers are nondeductible.

Realtors

Auto Travel:
This is based on the number of qualified miles you drive, including travel between business locations or daily transportation expenses between your residence and temporary work locations. Daily trips between home and your primary work location are commuting expenses and are non-deductible.

Out-of-Town Travel:
Expenses accrued when traveling away from home (referring to the city or general region where your principal place of employment is located) overnight on job-related and continuing education trips are deductible. Possible expenses include meals, lodging, transportation, tips, and miscellaneous items like laundry, valet, etc.

Communication Expenses:
The costs of a second line (basic service and toll calls) in your home are deductible if that line is used exclusively for business. Basic local telephone service costs on a first line are non-deductible, but toll calls from that line are deductible if the calls are business related.

Continuing Education:
Educational expenses are deductible only if it is a requirement for you to keep your job or rate of pay or it maintains or improves your skills in your profession. The cost of courses that are taken to meet the minimum requirements of a job or that qualify you for a new trade or business are not deductible.

Professional Fees and Dues:
Dues paid to unions and professional societies, including trade associations, business leagues, professional organizations, boards of trade, chambers of commerce, and civic organizations related to your profession are deductible. Dues paid for memberships in organizations for social or recreational purposes, including golf and athletic clubs, country clubs, and airline clubs are non-deductible.

Equipment Purchases:
Record separately from other supplies the costs of business assets that are expected to last longer than one year and cost more than $100.00. Normally, the costs of such assets are recovered differently on your tax return than are other recurring, everyday business expenses like business cards, office supplies etc.

Supplies & Expenses:
Generally, to be deductible, items must be ordinary and necessary to your real estate profession and not reimbursable by your employer.

Sales Representatives

Auto Travel:
This is based on the number of qualified miles you drive, including travel between business locations or daily transportation expenses between your residence and temporary work locations. Daily trips between home and your primary work location are commuting expenses and are non-deductible.

Out-of-Town Travel:
Expenses accrued when traveling away from home (referring to the city or general region where your principal place of employment is located) overnight on job-related and continuing education trips are deductible. Possible expenses include meals, lodging, transportation, tips, and miscellaneous items like laundry, valet, etc.

Communication Expenses:
The costs of a second line (basic service and toll calls) in your home are deductible if that line is used exclusively for business. Basic local telephone service costs on a first line are non-deductible, but toll calls from that line are deductible if the calls are business related.

Continuing Education:
Educational expenses are deductible only if it is a requirement for you to keep your job or rate of pay or it maintains or improves your skills in your profession. The cost of courses that are taken to meet the minimum requirements of a job or that qualify you for a new trade or business are not deductible.

Professional Fees and Dues:
Dues paid to unions and professional societies, including trade associations, business leagues, professional organizations, boards of trade, chambers of commerce, and civic organizations related to your profession are deductible. Dues paid for memberships in organizations for social or recreational purposes, including golf and athletic clubs, country clubs, and airline clubs are non-deductible.

Equipment & Supplies:
To be deductible, items must be ordinary and necessary to your job and not reimbursable by your employer. Record separately from other supplies the costs of business assets that are expected to last longer than one year and cost more than $100 .Normally, the costs of such assets are recovered differently on your tax return than are other recurring, everyday business expenses.

Miscellaneous Expenses:
You may include expenses of looking for new employment in the same line of work in which you are already working as deductions. You don’t have to actually obtain a new job in order to deduct the expenses. Job seeking expenses out-of-town are deductible only if the primary purpose of the trip is job seeking.

Telecommuting Employees

Equipment & Supplies:
To be deductible, items must be ordinary and necessary to your job and not reimbursable by your employer. Record separately from other supplies the costs of business assets that are expected to last longer than one year and cost more than $100 .Normally, the costs of such assets are recovered differently on your tax return than are other recurring, everyday business expenses.

Communication Expenses:
The costs of a second line (basic service and toll calls) in your home are deductible if that line is used exclusively for business. Basic local telephone service costs on a first line are non-deductible, but toll calls from that line are deductible if the calls are business related.

Professional Fees and Dues:
Dues paid to unions and professional societies, including trade associations, business leagues, professional organizations, boards of trade, chambers of commerce, and civic organizations related to your profession are deductible. Dues paid for memberships in organizations for social or recreational purposes, including golf and athletic clubs, country clubs, and airline clubs are non-deductible.

Auto Travel:
This is based on the number of qualified miles you drive, including travel between business locations or daily transportation expenses between your residence and temporary work locations. Daily trips between home and your primary work location are commuting expenses and are non-deductible.

Out-of-Town Travel:
Expenses accrued when traveling away from home (referring to the city or general region where your principal place of employment is located) overnight on job-related and continuing education trips are deductible. Possible expenses include meals, lodging, transportation, tips, and miscellaneous items like laundry, valet, etc.

Continuing Education:
Educational expenses are deductible only if it is a requirement for you to keep your job or rate of pay or it maintains or improves your skills in your profession. The cost of courses that are taken to meet the minimum requirements of a job or that qualify you for a new trade or business are not deductible.

Home Office Deduction:
If your home office is part of a residence it is deductible only if it is used regularly and exclusively as a principal place of business, or as a place to meet or deal with customers or clients in the ordinary course of business. Most telecommuting employees would meet the “principal place of business” test. They must also meet the “convenience of the employer” test, met when your employer asks you to work out of your home.

Waiters and Waitresses

Keeping a Good Tip Record:
The IRS requires waiters and waitresses to keep a record of their tips. Your tip records should clearly establish the tips you received. A timely, daily record is vital in meeting this requirement. The record needs to include tips you receive from:

your customers in cash;
other tipped employees because of a “tip-sharing” arrangement; and
your customers who pay by credit card

Keep your record updated daily to ensure accuracy. When you receive a tip but pay part of it to someone else (for example, a bartender), make sure to record the name of that person in your tip record along with the amount.

Reporting Tips to Your Employer:
Report the total amount of tips you receive to your employer in writing within the 10-day period following the end of the month in which you receive the tips. Your employer will add the amount to your regular wages and use the total to calculate the amount of withholding for income tax, Social Security, and Medicare tax.

Tips Not Reported To Your Employer:
Special rules apply to tips you received but didn’t report to your employer for any reason. If those tips total $20.00 or more in any given month, you must calculate your own Social Security and Medicare taxes for them. Remember, the IRS may also charge a penalty for tips that aren’t reported to your employer.

 

Don’t see your occupation, or have additional questions?
Please contact Taxation Solutions for more information.

Taxation Solutions, Inc.

17440 FM 529 Rd #111, Houston, TX 77095