Taxes on Tips: A Must Read for Tipped Employees - Myirsteam Tips, like regular income, are taxable. Be it a restaurant worker, casino employee, or limo driver, any employee who makes the majority of their income from tips, must record and report the income to the IRS. https://www.myirsteam.com/blog/taxes-on-tips-a-must-read-for-tipped-employees/