---
title: "How to Keep a Record of Tip-Outs"
description: "Keep a daily log of tips you got, tips you paid out, and who you paid. A diary, phone log, or your employer’s system works, with a paper copy."
url: https://www.tipmaxapp.com/us/answers/how-to-record-tip-outs
language: en
publisher: TipMax (Entermaurs Incorporated)
date_published: 2026-09-23
last_verified: 2026-09-23
---

# How do I keep a record of my tip-outs for taxes?

**Short answer:** **Keep a daily log.** For taxes, the IRS says your daily tip record should show the tips you got and the tips you paid out to other employees through tip pools or tip splitting, plus the names of the people you paid. A tip diary, a phone log, or your employer’s system all work. The trap: if you use your employer’s electronic system, you must get and keep a paper copy.

## Example math

You’re a server. Here’s one weekend in your log (all amounts illustrative):

| Day | Tips you got | Paid out | To whom | Kept |
| --- | --- | --- | --- | --- |
| Fri | $320 | $40 busser, $20 bar | Maria (busser), Dev (bar) | $260 |
| Sat | $410 | $50 busser, $25 bar | Maria (busser), Dev (bar) | $335 |
| Sun | $270 | $30 busser | Luis (busser) | $240 |
| **Total** | **$1,000** | **$165** |  | **$835** |

1. You report the **$835** you kept, not the $1,000 you got.
2. The **$165** and the names in your log show where the difference went. Maria, Dev, and Luis report what they received.
3. Add up each month’s kept tips and give your employer the total by the 10th of the next month.

**Not tax advice.** Names and amounts are made up for the example.

## Plain English

### What the IRS says to write down

For taxes, each workday your record should show the tips you got, cash and card, from customers or from other employees. It should also show the amount you paid out to other employees through tip pools, tip splitting, or other arrangements, and the names of the employees you paid. That last part is what backs up reporting only what you kept.

### Any format works

A notebook, a notes app, a tip-tracking app, or your employer’s system can all hold your daily record. If you use a system your employer provides, the IRS says you must receive and keep a paper copy.

### The old IRS forms are retired

Forms 4070 and 4070A used to be the IRS’s tip report and daily tip record. The IRS now lists both as historical. You don’t need to fill them out. The old 4070A layout, with columns for tips paid out and who got them, is still a handy model for your own log.

### Your log feeds everything else

Your monthly report to your employer comes from this log, and that report is what ends up on your W-2 (for 2026, box 12 code TP). Tips need to be on your W-2 or reported on Form 4137 to count for the federal tip deduction. See [Do I pay tax on the tips I tip out?](https://www.tipmaxapp.com/us/answers/do-i-pay-tax-on-tips-i-tip-out) and [I get tip-outs from servers. Do I have to report them?](https://www.tipmaxapp.com/us/answers/reporting-tip-outs-you-receive)

## Common mistakes

- Writing down only what you kept, with no record of what you paid out or to whom.
- Relying on your employer’s electronic record without keeping a paper copy.
- Rebuilding the log from memory at the end of the year.
- Hunting for Form 4070A as if it’s still required.

## Official sources

- [IRS Publication 531, Reporting Tip Income (keeping a daily tip record; Forms 4070 and 4070A are historical)](https://www.irs.gov/publications/p531)
- [IRS: Tip recordkeeping and reporting](https://www.irs.gov/businesses/small-businesses-self-employed/tip-recordkeeping-and-reporting)
- [IRS: 2026 General Instructions for Forms W-2 and W-3 (box 12 code TP)](https://www.irs.gov/instructions/iw2w3)

## Last verified

September 23, 2026. Checked IRS Publication 531 (daily tip record, electronic records, historical Forms 4070 and 4070A), the IRS tip recordkeeping page, and the 2026 W-2 instructions.

## Related

- [Do I pay tax on the tips I tip out?](https://www.tipmaxapp.com/us/answers/do-i-pay-tax-on-tips-i-tip-out)
- [I get tip-outs from servers. Do I have to report them?](https://www.tipmaxapp.com/us/answers/reporting-tip-outs-you-receive)
- [I’m a server. After tip-outs, how much is mine, and which number do I report?](https://www.tipmaxapp.com/us/answers/server-tip-out-math)
- [If I tip out bussers or the bar, whose tips count for the deduction?](https://www.tipmaxapp.com/us/answers/tip-outs-and-qualified-tips)

## How TipMax helps with this

This page is about keeping the log. TipMax is one.

TipMax is an iPhone app for servers and bartenders that tracks tips and tip-outs and turns a restaurant menu into study flashcards.

- Record tip-outs every shift, with tip-out rules for each job.
- Download all your data as a CSV any time.
- Your tips and earnings stay on your phone and in your iCloud. They’re never sent to TipMax, and you don’t need an account to track.

Download TipMax free: https://apps.apple.com/us/app/tipmax-study-track-earn/id6744850146

---

TipMax Answers explains public IRS and U.S. Department of Labor guidance in plain English for tipped workers. It is **not tax, legal, or accounting advice**. Federal rules are a floor; your state may add its own tip rules. Confirm with IRS.gov, DOL.gov, your state labor agency, or a qualified professional. TipMax the app helps you track tips and tip-outs; it does not file your taxes or decide tip-pool disputes.