-Tips are taxable. You must pay federal income tax on any tips you receive. The value of non-cash tips, such as tickets, passes or other items of
value are also subject to income tax.
-Include all tips on your return. You must include the total of all tips you received during the year on your income tax return.
-Report tips to your employer. If you receive $20 or more in tips in any one month, from any one job, you must report your tips for that month to your employer.
-Keep a daily log of tips.
For more information, check out Internal Revenue Service Issue Number: IRS Tax Tip 2014-16.