I work for a club as a volunteer, because the club is non profit organization we don't get paid but we work for tips. I average $225 a week in tips for the days I work. My big problem is how am I suppose to file taxes on these tips if I don't get a W2 form from the place I work/volunteer? My employer doesn't have us turn in our earned tips nor do they keep record. I have a journal for the amount I have made weekly, that is the only type of record I have. I need to pay in my taxes to the State and Federal, but I don't understand how to do this. Can anyone help me, I live in the State of Indiana, but work in Ohio. Please help if you know the answer, I don't want to get into trouble for not reporting the money I have made. Thanks Charwim

" I work. My big problem is how am I suppose to file taxes on these tips if I don't get a W2 form from the place I work/volunteer? "---> you are supposed to claim any and all tips. You don't receive a paycheck, its most likely 100% tips as you said. If so, you are also considered an independent contractor, which means you are self employed and not an employee of the club. The drawback to this is that you have to pay not only income tax on your earnings, but also FICA and Medicare (Self Employemnt Taxes). You shoudl file SCh C and Sch SE as long as the amount on Sch SE line 4 is 4400 or exceeds $400. Then you should pay SE taxes. As a sole proprietor or a self-employed individual, you generally have to make estimated tax payments if you expect to owe tax of $1,000 or more when you file your return.


"I live in the State of Indiana, but work in Ohio. "---> As your home state is Indiana, so you must file your Ohio return on your income including the tips that you earned in Ohio,and you can claim Ohio state tax credit on your Indiana return( as long as Ohio tax rate> Indiana tax rate)