Hello, I live in California and work for an Indian Casino.
I get paid my tips in cash and these tips aren't kept on record at the casino. I also get paid hourly $8.00 and get that pay check every two weeks.
I was told when I started that president Trump put something into effect that during this time that we only have to claim our tips are $1.25 an hour, but I make closer to $20 an hour in tips.
My co workers said not to claim anything other than the $1.25, but that sounds insane and illegal to me.
Am I wrong? Am I only supposed to claim the $1.25 because I'm in a tipped position and vague COVID-19 policies?
I've been holding off putting the cash in the bank for now.
Edit: I am not a server of any kind. I work a different tipped position where our tips are pooled every 24 hours and split evenly based on the amount of hours worked.
Edit 2: Thank you so so much to u/Japanese_Lasagna as they figured it out. I am part of tip compliance. This article: https://www.taxcontroversy.com/irs-gaming-industry-tip-compliance-program/ speaks some on it. Or from the IRS website: https://www.irs.gov/pub/irs-pdf/p4985.pdf
What I've come to understand is that the IRS and my Casino have come to an agreement on how much I should claim in tips ($1.25). It is normally a higher dollar amount, but based on some covid law it got pulled down to a crazy low level.
I can claim more tips if I wish, but it is not required.
Thanks again everyone, and especially u/Japanese_Lasagna for figuring it out.
Submitted August 08, 2021 at 09:37PM by GaymerMonkey https://ift.tt/3lJQX7T
