Originally Posted by
Analise
Thank you for responding to my question. Did the restaurant's estimate of the amount of money they think you earned in tips using a formula show up in black and white as your reported income on your annual W2 from them?
Yes, the amount was made very clear on the W2 but I'm not sure if it was listed separately under tips. It was certainly listed as some sort of income so I felt confident the IRS didn't expect me to list anything additional. Although I earned more in tips, there was no way the IRS could prove it since much of it was in cash, unless they shadowed me at work for a few days...