If you work as a cocktail waitress, there is a high chance of getting tips from satisfied customers. Some tips earned may be more than the wages received from your employer. Just like wages earned, tips are also regulated by the Federal income tax. You are to report any tips earned so that appropriate taxes can be deducted.
TaIt is important to involve a cocktail waitress tax lawyer to guide you in the process of tax reporting. This article addresses how to find a cocktail waitress tax lawyer and all you need to know about taxable tips.
It is important to understand the purview of your work responsibilities as a cocktail waitress. This not only helps you access your situation accurately, but you also know the required tax to pay.
A cocktail waitress is an employee that takes drink orders from customers to deliver them to the bartender. She also has the responsibility of restocking the bar and cleaning the tables. A cocktail waitress works in clubs, restaurants, bars, or any other place that sells drinks of all kinds. A cocktail waitress earns wages from their employer for the services they render. They may also get tips from satisfied customers.
The Fair Labor Standard Act refers to those that receive more than $20 tips as tipped employees. It is required that there should be tax reporting on such tips to your employer. The tax reporting on these tips is in turn documented in your income tax return. You can do this efficiently by following these guidelines:
- Keep records of tips received. You can do this by keeping a record of the date and value of the tips received. This includes not just cash tips but non-cash tips and other valuable items given as tips.
- You have the responsibility of reporting tips to your employer. The only exception is when the amount of tips received is less than $20 per month. The tip reporting is done via a written statement stating the following:
- The signature of the employee
- The employee’s contact details include the social security number, full name, and address.
- The employer’s contact details and the name of the workplace.
- The date and month the tip report covers.
- The total tips received during that period.
This tip reporting must be done by the 10th day of each month the tip is received. If the 10th day falls on a weekend or holiday, the next work day should be used for the reporting. There must be a written statement on tax reporting for every month the tip is above $20.
- You must include the tip on your income tax return.
It has been established there is a tax paid for tips above $20. However, the process of tip reporting and filing income tax returns can be complicated if not handled by an expert.
Tax lawyers are experts in various types of tax. They also have experience dealing with the Internal Revenue Service (IRS) as a statutory body for the payment of taxes. It is important to involve a tax lawyer to help with the process of tax payment. This helps you to avoid debt accrued from not filing your taxes. It also helps you understand the whole taxing system because of the following reasons:
1. Not all your income requires tax payment.
2. Some tax changes are not permanent.
3. You might qualify to get a refund without paying a dime in tax.
These listed reasons and some other information are what tax lawyers have firsthand knowledge of. Involving a tax lawyer can help you deal with all your tax problems and the IRS.
There are criteria to look out for before hiring a tax lawyer and they include the following:
A licensed lawyer would have undergone the proper training required. The knowledge gained from the training is used to help solve your problem.
It is important to tailor your search to a lawyer who deals specifically with tax law. This type of lawyer specializes in dealing with the IRS. You must also limit your search to a tax lawyer with experience with similar cases like yours. A tax lawyer knowledgeable in the area you need help is a great way to resolve your issues.
The tax lawyer you are searching for must have good reviews and a reputation. You can do your research by asking people and checking online reviews. In case you have issues with the IRS, you will need your tax case to be a success. You must find out from the tax lawyer their success rate with past cases they have handled.
There are tax lawyers who are costly and too busy and as a result, may not give your case adequate attention. It is important to find a lawyer within your budget who has the time to solve your tax problem as soon as possible.
Laws are changing to meet the prevailing needs of society. It is important to hire a tax lawyer conversant with the new laws that can help your situation. These types of lawyers continue to refresh their knowledge and keep up with various tax laws.
You can search your local state bar website for the lawyer’s name and reputation. The state bar is an association for lawyers within a locality. It is a credible way to ensure you are hiring the right person as your tax lawyer.
This is another way to ensure you are hiring a lawyer who specializes in tax law. There are various tax law associations and professional bodies for each state. These associations have a comprehensive list of lawyers that specialize in various areas of tax law. These lawyers are considered experienced and reputable to be on this list. You can check their websites for expert lawyers in cocktail waitress tax issues.
You must ensure in your research for a tax lawyer that you find a lawyer that keeps you up to date with your tax process. You must be well informed about your case. The tax lawyer is a liaison between you and relevant taxation bodies. Thus, you must ensure your case is represented clearly. This also puts your mind at rest during the taxation process.
There is so much an expert can do when you are faced with tax issues as a cocktail waitress. Tax laws are technical and oftentimes too complicated to handle alone. Hiring a tax lawyer is important to simplify this process and to ensure your right is protected.