Tax Breaks for Waiters
- Waitstaff are tipped employees. In most of the fifty states, waiters are paid less than the minimum wage by their employers. However, their wages plus tips must equal at least minimum wage for their state. Tipped employees must claim their tips as income for tax purposes.
- Keeping good records of tips received is vital for waiters and waitresses. Tips from the waiter given to other employees are not considered the waiter's income. For example, if a customer tips a waiter $20 and the waiter gives $2 to the busboy and $3 to the bartender, these are called tip outs. The waiter only needs to claim $15 as his income; he does not claim the $5 he paid out to other employees.
- Waiters and waitresses may need to fill out a Schedule A form when filing their personal income tax. Schedule A is for unreimbursed employee expenses. These are things that the employees buy with their own money that are necessary too do their jobs. Uniform clothing sometimes falls in this category. The clothing must be required by the employer and not be suitable for everyday wear. A shirt with a special logo or a bistro apron both qualify because they are not suitable for wear outside of work. If the uniform must be dry cleaned or hemmed, those expenses also qualify. But if the restaurant policy is that waiters wear black pants, the pants do not qualify as unreimbursed employee expenses because they are suitable for wear outside of work.
- Waiters and waitresses are sometimes required to hold licenses to serve alcohol or other professional licenses. The cost of maintaining licensure is considered an unreimbursed employee expense and can be included on Schedule A.
