State Tax Rules for Tipped Workers with Multiple Jobs: A Guide
Senior Finance Writer · 9/20/2026
State tax rules for tipped workers with multiple jobs vary by state and may differ from federal tax rules. “What are the state tax rules for tipped workers with multiple jobs?” is a crucial question to answer for those working in the service industry, particularly with multiple jobs.
Key takeaways
- Report tips of $20 or more per month from each employer to the employer on Form W-2, Box 14b.
- California requires tipped workers to report all income from multiple jobs.
- New York allows aggregation of tips from multiple jobs for state tax purposes.
- Use the 'per diem' method to allocate tips for drivers and other workers with variable schedules.
Do I Need to Report Tips from Multiple Jobs to My Employer?
Report tips of $20 or more per month from each employer to the employer on Form W-2, Box 14b. Use Treasury Tipped Occupation Codes (TTOC) to identify your occupation and report tips accordingly. Consult IRS Publication 531 for detailed guidance on reporting tips from multiple jobs. For example, if a server works at two restaurants, and receives $500 in tips from each restaurant in a month, they would report $1000 in tips on Form W-2, Box 14b. (See https://www.irs.gov/forms-pubs/about-form-w-2 for more information.)
- Use the 'per diem' method to allocate tips for drivers and other workers with variable schedules.
- Consult IRS Form 4137 for guidance on reporting unreported tip income.
- Check your state's tax authority website for specific guidance on tax rules for tipped workers.
Which States Have Different Tax Rules for Tipped Workers?
California requires tipped workers to report all income from multiple jobs. New York allows aggregation of tips from multiple jobs for state tax purposes. Check your state's tax authority website for specific guidance on tax rules for tipped workers. For example, in California, a bartender working at two bars would report all tips from both jobs on their state tax return. (See https://www.irs.gov/forms-pubs/about-form-4137 for more information.)
Key Takeaways and Next Steps
Key Takeaways
- Check your state's tax authority website for specific guidance on tax rules for tipped workers.
- Consult a tax professional if unsure about state tax rules or how to report tips from multiple jobs.
- Use IRS Publication 531 and Form 4137 for detailed guidance on reporting tips from multiple jobs.
Do I need to report tips from multiple jobs to my employer?
Yes, if you receive $20 or more in tips per month from each employer, you must report them on Form W-2, Box 14b. Use Treasury Tipped Occupation Codes (TTOC) to identify your occupation and report tips accordingly.
How do I allocate tips between multiple jobs?
Allocate tips based on the percentage of time spent working for each employer. Use the 'per diem' method to allocate tips for drivers and other workers with variable schedules. Consult IRS Form 4137 for guidance on reporting unreported tip income.
Which states have different tax rules for tipped workers?
California requires tipped workers to report all income from multiple jobs. New York allows aggregation of tips from multiple jobs for state tax purposes. Check your state's tax authority website for specific guidance on tax rules for tipped workers.
Table of State Tax Rules for Tipped Workers
| State | Tax Rule |
|---|---|
| California | Report all income from multiple jobs |
| New York | Allow aggregation of tips from multiple jobs for state tax purposes |
| Check your state's tax authority website for specific guidance on tax rules for tipped workers. |
It's essential to consult your state's tax authority website or a tax professional for specific guidance on tax rules for tipped workers with multiple jobs. Remember to use IRS Publication 531 and Form 4137 for detailed guidance on reporting tips from multiple jobs.