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UPDATED: AUGUST 1999

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INCOME EARNED

TIPS

In determining the amount of gross earned income an A/R receives from tips, a reasonable estimate of tips may be obtained if such factors as the number of persons served and the kind of establishment are kept in mind. For example, a person working in the dining room of a major hotel would generally receive larger tips than a person working in a small coffee shop.

When to Verify Status: (a) When the A/R declares income from tips on the application;

(b) When the A/R is employed in one of the occupations listed above or another personal service occupation,

Verification: While there is no standardized method for verifying tips, the following techniques have proven useful:

(a) Seeing the A/R's income tax return;

(b) Obtaining a statement from the employer with an estimate of the A/R's tips earned.

(MRG)