When would I report actual unreported tips instead of allocated tips?
Generally, you must report the full amount of allocated tips from Box 8 of your Form W-2 on the Menu Path: Income > Uncommon Income > Unreported Tips screen. However, report your actual unreported tips on that screen instead if either of the following applies:
- Your tip record is incomplete, but it shows that your actual tips were more than the tips you reported to your employer plus your allocated tips, OR
- You have records to show that you received less tips in the year than the allocated amount.
- You must have kept a daily tip record on Form 4070A or have other evidence that is as credible and as reliable as a daily tip record. Other evidence should include the value of all cash, credit, debit, and noncash tips, dates the tips were received, and tip amounts paid out to other employees (and their names).
