Anonymous asked in Politics & GovernmentGovernment · 8 months ago

Are people legally obligated to report money which they have received in the form of a "gift" or gratuity?

If a person who works at a local diner as a waitress, receives help and assistance or benefits thru the state/government .

Is she legally obligated to report the tips she earns at the restaurant?

What happens if she conceals these earnings? Will she be made to pay money back to which ever agency helped her?

How about in the event of a birthday or Christmas gift : A friend or relative gives me a large substantial amount of money of several hundred or thousand dollars.

Which in no way is relevant to performing work . Though was given as a "gift" out of the kindness of one's heart.

Does this count as income , which an agency will need to know about ? Will it effect the claimants benefits which he or she receives?

What happens if "gifts" or other cash contributions are not reported?

Some agencies I know ask to see a bank statement which shows the amount of funds in a checking or savings account .

But not all of us keep our money in a bank.

Some of us keep our money at home , in a glass jar or under the mattress .

6 Answers

  • Pat
    Lv 7
    7 months ago

    Everyone who gets government assistance MUST report ALL income from wages, tips, etc.

    Failure to do so will get your benefits cancelled.

    You have to repay them.

    And you can go to prison.

    Gifts must be reported if they're over a certain dollar amount.

    That amount varies by program.

    Hundreds of thousands of dollars is way over the limit.

    And it is taxable.

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  • RICK
    Lv 7
    8 months ago

    Yes tips must be reported

    Failure to do so would be tax fraud

    The IRS "estimates" tips as a percentage of sales

    A gift from a friend or relative does not need to be reported

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  • Judith
    Lv 7
    8 months ago

    To answer your question - anyone who receives public assistance is required to report the receipt of ALL income - regardless of type. Will welfare find out - they will if the tips show up on your W2 form because the employer sends a copy of the W2 form to the IRS which means that agencies will eventually find out. Also any income showing up in your bank accounts. Better to have benefits reduced timely then to have committed fraud and have to pay them back all at once - or not being entitled at all.

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  • Foofa
    Lv 7
    8 months ago

    If you're asking if you have to claim those things on your taxes, yes. To not report that would be tax fraud.

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  • 8 months ago

    she needs to ask the place where she gets benefits this question, ive always reported stuff, i dont want thern bothering rne about it later

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  • Eva
    Lv 4
    8 months ago

    Tips have to be reported to the employer so that they can be taxed and reported properly. This has always been the law and has nothing to do with being on benefits. Filing false claims (not reporting income or misstating household income and/or composition) is a criminal offense. Gifts have to be reported as well and they are only allowed to keep so much in assets. Several hundred dollars is probably not a problem; several thousand may be. Most agencies, if not all, require bank statements.

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