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Tips paid out by servers

Varies

Can You Write Off Tips Paid Out By Servers?

Short answer: Tips you share with bussers and bartenders aren't income to you if the tip-out is reported correctly; only the tips you keep count.

The 2026 tips deduction applies to the tips you keep.

Records to keep: Keep receipts, 1099s or W-2s, a mileage log, and a note of the business purpose. W-2 employees should ask about employer reimbursement.