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Tip Income

This refers to cash tips you get directly from customers, tips from customers using charge cards that your employer pays you, and the value of any non-cash tips you get, such as tickets, passes, or other items of value. If your total tips for a month are less than $20, you do not have to report it to your employer. Any other tips you receive should be reported to your employer so that Social security, medicare tax and railroad retirement tax can be withheld from your tip income.


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