Reporting Tip Income - for use in Preparing 2008 Returns

This publication is for employees who receive tips. All tips you receive are income and are subject to federal income tax. You must include in gross income all tips you receive directly, charged tips paid to you by your employer and your share of any tips you receive under a tip-splitting or tip-pooling arrangement. The value of noncash tips, such as tickets, passes or other items of value are also income and subject to tax.