Tax Return Tips for Working in the Restaurant Industry
Restaurant employees fill a variety of roles. Some serve food to customers. Others prepare the food or drinks. Some train the employees, while others schedule the employees. For most restaurant employees, April 15 signifies the deadline for tax return filing. These taxpayers need to understand how the unique aspects of their career impacts tax return filing. Knowing these tax return tips can help.
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Gratuity Income
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Many restaurant employees receive gratuities, or tips, from customers in addition to their regular salary. Some restaurants require the staff to share the tips, while others allow the employees to keep all the tips they earn. The tips earned represent additional income to the taxpayer. The taxpayer needs to keep track of the tips she receives throughout the year. Some employers record the tips at the end of each shift. The employee needs to include the tips received along with her wages earned on her income tax form.
Uniforms
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Restaurants often require their employees to purchase uniforms to wear at work. These employees may also purchase shoes to accompany their uniform and take the pressure off of their feet. Some restaurants reimburse the employees for the cost of the uniforms. Others choose not to reimburse. Employees who receive no reimbursement for their uniforms or work shoes can deduct this cost on their tax return. To receive this deduction, the taxpayer needs to itemize his deductions on Schedule A. The total of the employee's unreimbursed employee expenses, including uniforms, must exceed 2 percent of the employee's adjusted gross income to receive this benefit.
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Trade Journals
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Magazines and journals which specialize in the restaurant industry keep restaurant managers and supervisors informed with the latest trends, such as customer preferences or time keeping procedures. Employees who subscribe to these publications can deduct the cost of the subscriptions on their tax returns. These costs represent unreimbursed employee expenses, along with the uniforms, and appear on the Schedule A.
Continuing Education
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Some restaurant employees take continuing education classes, either as a requirement of their job or to qualify for advancement. Bartending classes and food safety courses represent required courses for many employees. Others might pursue a degree in hospitality management. If the employee pays for these courses personally, she may qualify for tax credits or deductions. The taxpayer qualifies for these benefits based on educational cost and income. She does not need to itemize her deductions to receive this benefit.
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