Cancun Vacation Packages Tips: What to Consider When Planning a Trip to Cancun

It’s hard to believe that the beaches of Cancun were once empty stretches of white sand only occasionally visited by Mayan fishermen. It wasn’t until the 1960s that the area was turned into a tourism development project. Today, millions of tourists around the world are always looking for deals on Cancun vacation packages. Not only are there affordable luxury resorts located throughout the area, airfare is typically low as well. There is something for everyone: couples-only resorts, family-friendly activities, beaches, water parks, Mayan ruins, etc.What resort packages in Cancun include varies depending on factors such as the resort itself, package, pricing, and availability. In general, you can expect things like:• Nice room or suite• Most (if not all) meals• Recreational activities• Access to gym• Premium brand alcohol• Golf• Dry cleaning / laundry services• Room service• Airport transfersIf you stay at a family-friendly resort, there will be many kids’ activities included as well.You might not get all of the aforementioned services. Once again, it depends on the resort. There are also Cancun vacation packages that are tailored with a specific theme, such as spa, outdoor adventures, honeymoon, or golfing.On some travel booking sites, you will be allowed to book a hotel room with airfare and car rental all at once. You might even get a discount depending on when you plan to go and the number of nights you are going to spend.Best Time for Cancun Vacation PackagesWhen should you go to Cancun? High season runs from the middle of December to March, and low season is from May to November. Even though the hotels are the cheapest during low season, the weather isn’t the most desirable. A good compromise would be to go during shoulder season, which is early December and the entire month of April.You might not need your own rental car since the area has good, reliable public transportation. If you plan to stay at a large resort, most of your needs will be taken care of anyway and you really won’t need to leave unless you want to go exploring and sightseeing. The only time that a rental car might be necessary is for tourists who want to spend a day exploring the Mayan ruins.Think about what kinds of activities you will be interested in and what places you want to visit during your trip. Look for Cancun vacation packages that include hotels or resorts near the places you want to see and experience. Don’t spend money on an all-inclusive package if it features things you don’t think you’ll necessarily need.Check out discounts on Cancun vacation packages online. The site has last-minute deals, all-inclusive vacations, and a variety of coupons to help you save on your next vacation. It’s easy to keep up with all of the daily deals and compare offers.

The Tips to Plan Tax on Your Tips

Handle your tips carefully

You should report your tips accurately to your employer and also on your tax return. Remember, tips are received by people working in various industries. So if you don’t work for a restaurant, do not assume that you can avoid reporting tips. Cab drivers, club attendants, hairdressers -all of them or people working in the similar professions must report tip income to IRS.

You should keep daily record of tips in a tip diary. You should use Form 4070 to report such tips to your employer. Tips include -which you get from the customers’ order from other employees and tips from credit card charge customers that your employer pays to you. You should also report the non-cash tips you get in the form of tickets, passes or other items. The amount of tips which you paid to other employees through the tip pools should also be reported with the name of the employees to whom you paid them.

You should not include in your tip diary the amount of service charge that your employer adds to the bill of his customers and then pays you as part of your wages.

The reporting of tips to your employer is very important because your employer can withhold Federal income tax and social security as well as Medicare taxes on that amount.

If your total tips for any one month from one job are less than $20, you need not report them to your employer. You need not report the value of non-cash tips to your employer. This is because you do not pay social security or Medicare taxes on them.

If there is no other way to report your tips to your employer, then you should use form 4070 employees report of tips to employer. You can fill in the necessary information on that form, sign and date that form and give it to your employer. Alternatively you can hand over a statement to your employer with your name, address, social security number, the month in which you received tips, and the total tips required to be reported for that period. You can also send this statement electronically to your employer. The report should be sent to your employer every month by the 10th of the next month. If your employment ends during the month, then you can report your tips when your employment ends.

There is a penalty for non-reporting tips. The penalty maybe equal to 50 per cent of the social security and Medicare taxes you owe on the under-reported tips.

If your regular pay is not enough for your employer to withhold all the taxes, then you can give money to your employer to take care of the rest of the taxes. All taxes which are for the month can be collected by your employer from your next paycheck. If some taxes remain uncollected at the end of the year, you may be subject to a penalty for the underpayment of estimated taxes.

Reporting tips on your tax return

You can report your tips with your wages in forms 1040EZ or Form 1040A or form 1040. If you receive tips as a self employed person, you should report them as your income on schedule C or C-EZ.

Your employer can allocate tips to you in addition to the tips you reported to him, if you worked in a restaurant that must allocate tips to employees or the tips your reported to your employer were less than your share of 8% of food and drink sales. You must report these allocated tips on your tax return. Your employer can use a tip rate lower than 8%, but not less than 2%, to your allocated tips only if IRS approves the lower rate.

Reporting correct tips as your income is good for your future because this figure can be used to determine how much money should be paid in your social security and Medicare accounts. This will be very convenient for collecting these benefits on your retirement or if you are disabled.