A friend of mine works in the serving business. She obviously has to claim her tips...but on her check she is being taxed for her claimed tips, PLUS they are deducting the claimed amount out of her check? Isn't this wrong?

No, it's absolutely correct. Cash tips are totally taxable, so they have to be added into earnings. And they must be deducted from net, because she already has the cash; if they didn't do that she would be "paid" her tips twice.

Alright..thank you:)