Are Tips Taxable Income for the IRS?

Ask Paywizard.org - Are tips taxable income? Paywizard.org answers.
Question:
Regarding tip income, is there a percentage that is required to be reported to the IRS?


Answer Paywizard.org:

 

 
The IRS is very specific about tip income. I quote: "If you received $20.00 or more in tips - this amount differs per state, please check the definition of a tipped employee on paywizard.org - you should report all your tips to your employer so that federal income tax, social security and Medicare taxes, and maybe state income tax can be withheld."
 
All tips are taxable income.

 

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