Track Earnings

• Many workers fail to keep track of their income throughout the year, attempting to put it altogether just before April 15 rolls around. This can be an expensive strategy, especially if you find that you owe more in taxes than you can afford to pay. It is critical for restaurant workers, whose incomes can vary widely from season to season, to keep track of how much they make throughout the year.
  
  You can lighten the burden a little by using a good accounting or tax preparation program. Software packages like Quicken and Turbo Tax make it easy for you to keep track of the money you make, the money you spend and the taxes you owe. These technological tools are definitely a worthwhile investment for any worker in the restaurant industry.
  
  

Save Tip Sheets

• Perhaps the most important part of tax preparation for the restaurant worker is accurately reporting your tips. While it is the responsibility of each employer to withhold taxes from regular wages, it is up to each employee to report tips accurately to the IRS. For every shift worked, you should receive a tip sheet showing how much was made in tips. This tip sheet makes it a lot easier to prepare taxes when the time comes. Therefore it is important for each restaurant worker, no matter how many or how few tips you receive, to store those tip sheets in a safe place and use them throughout the year to estimate any taxes that may be due.
  
  

Tally Expenses

• As important as it is to track income, it's equally important to track expenses. Keeping an accurate tab on your expenses can cut your tax bill and help you make the most of your money. For instance workers who are required to buy their own uniforms and pay for laundry services to clean them may be able to write off those expenses against the taxes they owe. When tracking work-related expenses it is important to keep all receipts and carefully document purchases. Keeping all tax documents in one place will make it a lot easier to prepare your taxes when the time arrives.