As a cab driver, you should claim tips based on the total amount you receive from passengers, as tipping is generally expected in the industry. It's advisable to track all cash and electronic tips accurately for tax purposes. The IRS requires that all income, including tips, be reported, so claiming all received tips helps ensure compliance with tax laws. Additionally, a good practice is to aim for claiming approximately 10-15% of your total fares as tips, depending on your region and typical customer behavior.
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