In general, file and prepare the final individual income tax return of a deceased person the same way you would if the person were alive. Report all income up to the date of death and claim all eligible credits and deductions. If the deceased had not filed individual income tax returns for the years prior to the year of their death, you may have to file. It's your responsibility to pay any balance due and to submit a claim if there's a refund.
Tips are taxed because they are a form of income. Some tips are subject to Social Security and payroll taxes, and some are not. Tips that must be reported and taxed include:
Cash tips totaling more than $20 in a one-month period.
Electronic tips paid through credit, debit, or gift cards.
Tips received from other employees that are paid to you through tip pools, tip splitting, or other tip-sharing arrangements.
The IRS considers it to be taxable income. Sometimes the court will send you a 1099-G or 1099-MISC form with your jury duty payment, other times you won't receive a 1099.
Each year, the IRS allows you to deduct unreimbursed expenses for qualifying medical expenses if they exceed 7.5% of your adjusted gross income (AGI).