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Depositing my tips everyday

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wazawski
Posts: 756 - Karma: 159
Just wondering how bad/big of a deal it is for me to be depositing my tips I earn from valeting everyday into my bank account. Tips are usually $80-100 a day all cash, so if someone were to look over my bank statement, they would see cash constantly being deposited. I started getting a little paranoid about it so I bought a safe and have been stashing all of my tips at home. But I really would rather have all my money in my bank account. So honestly, do you think a valet is really at risk of being audited? Does the IRS ever check your bank account for constant cash deposits/would a bank ever report something like that?
Sep 24 2012 1:22AM
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1337
Posts: 31059 - Karma: 29,329
no, tips are not taxed as far as i'm aware, and I highly doubt someone would get suspicious about it tbth. Lots of kids make money on tips and deposit them daily just like you, not really a huge deal.
Sep 24 2012 1:25AM
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Balto
Posts: 25985 - Karma: 4,404
the irs doesn't check in on you unless they have a reason too
Sep 24 2012 1:29AM
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rareison
Posts: 10263 - Karma: 219
Why don't you collect your tips for a week, then deposit that at the end of the week? Would be less suspicious imo. Idk just a suggestion.
Sep 24 2012 1:29AM
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KingTaco
Posts: 2510 - Karma: 2,829
you are technically supposed to claim tips on a tax form at the end of the year. I made about 2000 in cash this summer and was able to deposit it without a problem but it sounds like youre making more. I would deposit it all and report about half when it comes time. Nothing under 10000 is supposed to even alert the irs, but its better to be safe than sorry
Sep 24 2012 1:30AM
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TijmenDal
Posts: 4849 - Karma: 1,295
That is to say, if you would deposit 5000$ daily in your bank account because they're 'tips' they will check on you. 80-100 a day isn't gonna raise any suspicion.
Sep 24 2012 1:34AM
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Rafiki
Posts: 3858 - Karma: 2,251
you should be paranoid about the government/bank system caring what you're depositing when you're putting in $100k+ a week
Sep 24 2012 1:35AM
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Hamster.
Posts: 1636 - Karma: 26
As long as you pay taxes on your hourly rate, they should check your name off the list and not bother you.
Sep 24 2012 1:47AM
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Cufe.
Posts: 1950 - Karma: 262
save them all up and keep depositing them after big drug busts in surrounding areas, it could be a fun game!
Sep 24 2012 1:50AM
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grown-ninja
Posts: 3031 - Karma: 175
100's small beans man, could be a daily allocance if youre rich or something no need to worry, also in us youre supose to claim everything from tips to outof state sales tax you didnt pay, honestly make sure your safe is fire proof and bolted to the ground, get a gun and your money wil be 100x safer than in a bank, and i personally would get more satufaction out of knowing im giving the bank an interts free loan thell give you .02% on.
Sep 24 2012 7:40AM
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quixotic
Posts: 6937 - Karma: 2,978
no way. you have absolutely nothing to worry about.
Sep 24 2012 7:48AM
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KyleA
Posts: 865 - Karma: 510
lolz.
Sep 24 2012 7:50AM
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Errl
Posts: 2082 - Karma: 451
you can deposit up to $9,999 cash without being investigated. i think you'll be fine.
Sep 24 2012 8:10AM
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Rachy
Posts: 4355 - Karma: 2,761
My sister got audited for not claiming enough tips.

Ask your employer.

The government knows that certain jobs generally receive tips. Car Valet is likely going to be on this. They have an amount they expect to see.

So you need to talk to your boss and see if he sends in tax information for tips. If he doesn't, you're probably ok. If he does, you need to start assuming you'll owe money.

That being said, if it's a shady business, the entire company could end up getting audited leaving you screwed as well.

Usually it's likely ok to report less than what you actually get because the "expected" numbers are typically pretty low. But if your job describes you as a valet, you should be reporting something.

My sister got audited and ended up owing $800 I believe, so it does happen for small amounts.
Sep 24 2012 9:04AM
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802Valley
Posts: 625 - Karma: 309
as a ski instructor i made a thousand dollars in tips off of one guy a couple of winters ago, i deposited my tips just like you nothing happened, i wouldnt stress about it
Sep 24 2012 9:15AM
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corona
Posts: 12804 - Karma: 32,823
I'd deposit whatever you wouldn't be spending. So if you usually spend say $500/month on gas, food, beer, etc etc then just don't deposit that much of your tips a month. That way that money just kinda disappears as it's traded for goods and services.
Sep 24 2012 9:22AM
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KravtZ
Posts: 6637 - Karma: 2,629
worked off the books for a year and a half made around 20,000 tax free deposited it in average 500 increments no one bothered me
Sep 24 2012 9:23AM
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corona
Posts: 12804 - Karma: 32,823
I just reported you to the FBI. Have fun getting raped in jail.
Sep 24 2012 9:26AM
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RileyZap
Posts: 420 - Karma: 27
I was in the same boat as you, but I was getting paid cash at a part time job. Usually putting $500-$600 in the bank every Monday morning.. Never got asked about it however.
Sep 24 2012 9:53AM
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BROSEIDON
Posts: 3702 - Karma: 1,495
thats literally nothing, i dont think youre gonna have to buy a carwash to launder your money
Sep 24 2012 10:54AM
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Dunnah
Posts: 1215 - Karma: 277
I think you'll be fine, kid.
Sep 24 2012 11:23AM
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Caspaaa
Posts: 4830 - Karma: 1,466
simple solution...




save up tips for a week. deposit tips on friday afternoon or sometime during the weekend... that way it'll look just like your normal paycheck...



i doubt someone would be suspicious of it though.
Sep 24 2012 11:25AM
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PON3
Posts: 3817 - Karma: 783
Just report it like a normal person?

If you do the right thing and abide by the law, you wont have any thing to stress about. Then you wouldnt have to make threads on NS asking 15 year olds about tax advice.
Sep 24 2012 2:55PM
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SSteezle
Posts: 9300 - Karma: 7,700
yeah, um not something to be claiming on the internet
Sep 24 2012 3:01PM
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Miomo
Posts: 4302 - Karma: 14,133
And on the note of asking teenagers about tax advice, I'm not entirely sure how this works. So you pay your taxes and whatnot, and if you don't claim/pay enough, then the IRS audits you and you get a fine or something? I just don't know what audit means...
Sep 24 2012 4:11PM
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PON3
Posts: 3817 - Karma: 783
They just check every thing about you. Where your money goes, all your bank accounts, I think your employer as well. And they will see you are getting paid a certain amount but you only claimed another amount. You pay a huge fine if you have discrepancies, and even face jail time.

The IRS does random audits and every citizen. Its a pure random process and its really not a big deal. The chances of being randomly audited are slim to none. But there are triggers set up with the IRS that catch things, such as late payments, and what not that trigger and audit. Then you are effed.

So here is some tips.
1. Just pay your taxes.
2. Dont skimp here and there, they look for that kind of stuff.
3. If you have business expenses make sure to track them all down because you can get a few exemptions that will save you money.
4. If you get audited prepare to pay A LOT of money.
5. Record all money received as gifts and tips. That is considered INCOME!

I am not a tax expert, so point out flaws if I have made them. I took an income tax class last semester so I am just spilling out what my college brain knows. So if there is any one else knowing about taxes please fill in.
Sep 24 2012 5:25PM
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edai
Posts: 4990 - Karma: 4,677
haha 95% of ns wouldnt be able to figure out what to do with that info even if they did give a shit
Sep 24 2012 5:55PM
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theabortionator
Posts: 51744 - Karma: 163,536
Unless you're putting 6 grand+ in cash in your account every week with no legitimate job on record you're probably cool. Bank accounts suck anyway. Invest in hookers and blows. The stock market is goin down but the coke will always get you high.
Sep 24 2012 6:03PM
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cobra_commander
Posts: 16909 - Karma: 4,684
If there is a big difference between the amount of cash you deposit, and how much you report in tips, you will get audited, regardless of whether you deposit it in one lump sum, or every week.
Sep 24 2012 6:22PM
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Trollolo
Posts: 793 - Karma: 16
A lot of people are talking about the deposits "alerting someone" ... that will never happen with small deposits like that. However, waitresses and other jobs that earn a lot of income off tips WILL get audited from time to time, especially if you claim nothing in tips. I'd claim maybe 10-20% of your tip money and pocket the rest.
Sep 24 2012 6:33PM
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midwestpowhunter
Posts: 2198 - Karma: 189
if you were audited. then they would check bank account info. if you didnt claim the money that was deposited they would ask for documentation of were you received it. YES tips are income and anything that you receive as a financial benefit is taxed unless it is a gift or an insurance award. the most they would make you repay is the amount you neglected to pay plus fines and interest. also this would be a huge hassle. If u are worried pay ur taxes. if u realize that you are small apples but ur still perinoid then just put it in ur safe and dont worry about it. Then if ur audited they are going to want to know where ur 50 inch flat screen came from and you are going to say it was a gift from an ex-girlfriend.
Sep 24 2012 6:38PM
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Ski_ThEast
Posts: 1676 - Karma: 272
i deposited around $100 a day this summer caddying, entirely off of tips.  And as a caddy i'm not even considered to be employed and it was fine.
Sep 24 2012 6:40PM
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SSteezle
Posts: 9300 - Karma: 7,700
yeah well there's feds on here and i've had a cop show up at my door because of something I've said on NS. You'll prob. choose not to believe it, but I know first hand there's rats on here
Sep 24 2012 7:17PM
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Lt-Aldo-Raine
Posts: 2309 - Karma: 120
Yeah i've heard that there are feds on here too
Sep 24 2012 7:24PM
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panojibber.
Posts: 1041 - Karma: 683
Hahaha perfect.
Sep 24 2012 8:09PM
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