Income from Tips
A client who receives tips from their work must report them as income. Income from tips can be documented in the following ways: on the client's pay stubs. IRS Form 4070. a tips ledger or letter from the employer. a ledger completed by the client.
If a client holds a job that would normally receive tips, especially when the hourly wage is below the State minimum wage, and none of the above documentation is available: instruct the client to begin documenting tips in one of the methods listed above. add 10% to the calculated monthly income amount. reassess the income at the next scheduled Redetermination or if the client provides documentation of income from tips of less than 10%.