Question: Are all tips taxable or only after a certain amount?
Answer: All the tips you receive are subject to federal income tax, the IRS explains in Publication 531, which you can read at 808ne.ws/29myXcM.
You must include in gross income all tips you receive directly, charged tips paid to you by your employer, and your share of any tips you receive under a tip-splitting or tip-pooling arrangement, according to the IRS, which advises tipped employees to keep a daily record.
You must report $20 or more in cash, check, debit or credit card tips you receive in any single month to your employer so that your employer can withhold payroll taxes as required.
The value of noncash tips, such as tickets, passes or other items of value, is considered income and is subject to income tax. However, you don’t need to report these to your employer because payroll taxes are not withheld on noncash tips, the IRS states.
Although the IRS publication is detailed, its core advice boils down to this: Keep a daily record of your tips. Report tips to your employer on a monthly basis as required. Report all tips as income on your annual federal tax return.
Wahiawa Memorial
The public is invited to the second annual Wahiawa War Memorial Ceremony, to be held 1 p.m. Sunday in Wahiawa District Park Hale o Kipa, 1129 Kilani Ave.
The event will honor 21 members of the 100th Infantry Battalion/442nd Regimental Combat Team from Wahiawa who were killed during World War II, and also recognize their family members and others who sacrificed for the good of the community.
The Royal Hawaiian Band will play, and veterans and community groups will be represented. The keynote speaker is scheduled to be Jeanne Ishikawa, who will share the history of the civic-minded “Wahiawa boys” — including her father, George Ishikawa, who was older than the rest of the group — who returned from the war determined to help their hometown and memorialize their fallen comrades.
Their efforts propelled construction of what is billed as Oahu’s first regular municipal swimming pool, at the district park in Wahiawa.
A memorial plaque outside the pool, which was completed in 1949, bears the names of the 21 soldiers killed in action.
Jeanne Ishikawa is deputy director of the city Department of Parks and Recreation. Her poignant account of the pool’s history enthralled an audience at a senior citizens event last year, prompting a reader to want to hear more of the story. The resulting Kokua Line column was published May 25, 2015, and can be found at 808ne.ws/29m9hQ5.
Sunday’s ceremony is hosted by the Wahiawa Lions Club. For more information, call Rene Mansho at 291-6151 or send email to renemansho@hawaii.rr.com.
Not so fast
In response to the fast lane/slow lane critic (808ne.ws/29mfnzT): I am one of the drivers who usually goes 40 mph and sometimes am in the left lane on Pali Highway. I would like to remind persons who object to my 40 mph speed that the posted speed is 35 mph. Furthermore, I need to be in the left lane when possible so that I can turn left into Jack Lane. There are other left lane turn-offs from Pali Highway as well. — Mandy B.
Mahalo
While exiting Sam’s Club after shopping, I was notified by a personable lady that my shoelace was untied. Obviously concerned about preventing an accident, she accompanied me to a bench and even tied my shoelace. I was deeply touched by this kindness to a senior citizen with an assistive cane. — Mahalo from a grateful shopper
Write to “Kokua Line” at Honolulu Star-Advertiser, 7 Waterfront Plaza, Suite 210, 500 Ala Moana Blvd., Honolulu 96813; call 529-4773; fax 529-4750; or email kokualine@staradvertiser.com.
