Well, I guess anyone working for tips... I just did my girlfriends taxes for 2008, this is the 3rd year I have done them. She is a server for Wild Wings Cafe. I use a free online service for her federal, and just fill online and send in manually for state. I use the EZ for both state and fed. The 1st two years, she got around $400 back from the feds and owed the state $50-60. This year, she got only $100 from the feds, and owes $422 to state!! Something doesn't seem right. And, while its possible I messed up.. I really don't think so. I'm just wondering if there is something I have to do different since we're working with tips instead of steady wage? or maybe something changed over the last year? The stimulus check she received affected? It sounds to me like since she only makes $2.33 an hour or something, there just wasn't enough in her checks to take out.. hence the debt.. Any thoughts would be appreciated...
What percentage of tips do you claim? I wouldn't claim more than 10%. That's what we were told to claim when I worked as a server.
^^ Its my GF.. I just asked her about that. She says all Credit card tips are automatically claimed, and she doesn't claim cash tips at all... sounds fucked up, like that would def. be the issue.. but not sure why its only been like this this year, and not the last two. Just looked at her last years taxes, she earned almost double this year in her salary,wages, other comp. than last....
didn't claim enough. if you claim you make more than your tax return would be higher, but also they will take out more taxes for being in a higher tax bracket. i was only claiming my credit card tips too, but then towards the end of the year started claiming some cash as well. i only made like 15000 last year, between serving and a full time job up until june. My student loan interest brought be down to 14000 something. so i wound up getting back like 566 federal and 206 state or something. year before i made 17500 and got back like 800 federal and 150 state and that was 3 full time jobs and no serving don't really understand the taxes man. they never make sense to me
^^ I know man... Don't really get it either. What you said makes perfect sense, I'm just not sure why this year is so different when she didn't change anything (besides making double what she made last year... 19k vs. 10k)... To me, going from +$500 Fed/-$50 State last year to +$100 Fed/-$422 State this year is a drastic change.
talk to russ (dontcallitarex, I think)...he works with a tax firm. I went and met Eugenia (his employer) this morning to take care of my taxes. Granted, I paid for mine, but Russ can probably give you a few pointers to make sure you're on the right track.