What are actual tips?

Actual tips are the tips (both cash and noncash) you received from customers. Any tips you reported to your employer are already included in the wages shown in Box 1 of your Form W-2. This screen is for any other tips you haven't yet reported.

If you're reporting actual tips, this amount will come from your tip record. A tip record is a daily record of all tips you receive from customers, tips you receive from other employees who tip out to you, and the amounts you tip out to other employees.

When would I report actual unreported tips instead of allocated tips?

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