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Which of the Following Statements Regarding Tip Income Is True

Question 7

Multiple Choice

Which of the following statements regarding tip income is true?


A) If you are an indirectly tipped employee (for example, a busser or bartender) you are not required to report tips to your employer.
B) Any tips you reported to your employer are to be included in the wages in box 1 (Wages, tips, other compensation) of your Form W-2.
C) If the only tips you receive in a month are charged tips (for example, credit and debit card charges) distributed to you by your employer, you are not required to report these tips to your employer.
D) You must report the value of any noncash tips, such as tickets and passes, to your employer.

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