Form 4137. Social Security And Medicare Tax On Unreported Tip Income: Fill & Download for Free

If your employer is not taking out your share of Social Security and Medicare taxes for you (or if you are earning tips), then you will be taking home wages that have not yet been taxed by these programs and are therefore “unreported.” These wages must be reported to the IRS when filing taxes so that the proper amount of Medicare and Social Security taxes can be taken out.Form 4137 is used by service employees and any other workers who receive tips. Tip money is subject to state and federal taxes just like any other income and Form 4137 is where that money is reported when filing your taxes.Form 8919 is for workers who are paid as independent contractors and therefore did not have Social Security and Medicare taxes taken out by the employer.If either scenario applies to you, you must use the appropriate form to report your income for tax purposes. Not doing so may not only put you in hot water with the IRS but you can put your Medicare eligibility in jeopardy as well. In order for most people to qualify for Medicare benefits, a minimum of at least 40 quarters (roughly 10 years) of reported taxes is required.

There are two boxes on the W-2 in which tips are recorded. Social Security tips are reported in Box 7. Allocated tips are reported in Box 8. Only the tips that appear in Box 7 are included in your wages in Box 1, and that should match the amount that you reported to your employer. The amount that appears in Box 1 on your W-2 should equal the amount that appears in Box 3 (Social Security Wages) plus the amount that appears in Box 7. Allocated tips, as Wray notes below, are reported in Box 8. The Box 8 amounts do not appear in Box 1 (or Box 3, 5, or 7). If you reported tip income that is less than 8% of the amount of food and drink sales that can be allocated to you, your employer adds this into Box 8. The intent of this requirement is to provide an incentive for employees to make an honest report of their tip income to their employers, and to account for situations in which the employee did not report tips when the employee made less than $20 of tips in a month.Normally, what you do with tip income is to take the amount of your wages reported in Box 1 of the W-2, add in the amount of tip income that you did not report to your employer because it was less than $20 in a month, report that amount on Line 7 of your Form 1040, and file Form 4137 (http://www.irs.gov/pub/irs-pdf/f4137.pdf) with your return to compute and pay pay the Social Security and Medicare taxes on the unreported portions of your tips.If your issue is with what was reported in Box 7 of your W-2, then you should do what Wray suggested. If, however, the info in Box 7 of your W-2 matches what you reported to your employer, and your issue is with what appears in Box 8, then your employer is likely not at fault here. What the IRS will be looking for on your return is a Form 4137 on which you have reported the income from the allocated tips that appears in Box 8, and for that amount to be added into your wages (from Box 1 of the W-2) reported on line 7 of your Form 1040. The IRS does clarify that, if you have records that support adding less than the amount reported in Box 8, you can report what you actually made and did not report to your employer on Form 4137 and Line 7 of your Form 1040 - see Publication 531 (2012), Reporting Tip Income.

The "Non-Filers: Enter Payment Info" form doesn’t seem to exist.When you enter the site from the IRS link it automatically takes you to the 1040 form.Non-Filers: Enter Payment Info HereI think it should be located here: Welcome to Fillable Forms or here: Welcome to Fillable FormsBut it isn’t.Clicking on “Add a form” doesn’t show any relevant forms.Here is a list of the forms which show up:Form 1040 - U.S. Individual Income Tax ReturnForm 1040 Additional Dependents StatementW-2 - Wage and Tax StatementW-2G - Certain Gambling Winnings1099-R - Pension/IRA DistributionsDependent Identity Protection PIN - Form 1040Form 1040-V - Payment VoucherSchedule 1 - Additional Income and Adjustments to IncomeSchedule 2 - Additional TaxesSchedule 3 - Additional Credits and PaymentsSchedule 8812 - Additional Child Tax CreditSchedule A - Itemized DeductionsSchedule B - Interest & Ordinary DividendsSchedule B Part I - Additional Interest StatementSchedule B Part II - Additional Dividends StatementSchedule C - Profit or Loss From BusinessSchedule D - Capital Gains and LossesSchedule E - Supplemental Income and LossSchedule E - Supplemental Income and Loss, page 2Schedule EIC - Earned Income CreditDependent Identity Protection PIN - Schedule EICSchedule F - Profit or Loss From FarmingSchedule H - Household Employment Taxes - TaxpayerSchedule H - Household Employment Taxes - SpouseSchedule J - Income Averaging for Farmers and FishermenSchedule R - Credit for the Elderly or the DisabledSchedule SE - Self-Employment Tax - TaxpayerSchedule SE - Self-Employment Tax - SpouseSchedule SE - Self-Employment Tax Part B - TaxpayerSchedule SE - Self-Employment Tax Part B - SpouseForm 982 - Reduction of Tax Attributes Due to Discharge of Indebtedness (and Section 1082 Basis Adjustment)Form 1116 - Foreign Tax CreditForm 1310 - Statement of Person Claiming Refund Due a Deceased Taxpayer - TaxpayerForm 1310 - Statement of Person Claiming Refund Due a Deceased Taxpayer - SpouseForm 2106 - Employee Business Expenses - TaxpayerForm 2106 - Employee Business Expenses - SpouseForm 2120 - Multiple Support DeclarationForm 2210 - Underpayment of Estimated Tax by IndividualsForm 2210AI - Annualized IncomeForm 2210F - Underpayment of Estimated Tax by Farmers and FishermenForm 2439 - Notice to Shareholder of Undistributed Long-Term Capital GainsForm 2441 - Child & Dependent Care ExpensesAdditional Form 2441 Information StatementDependent Identity Protection PIN - Form 2441Form 2555 - Foreign Earned Income, Pages 1, 2 - TaxpayerForm 2555 - Foreign Earned Income, Page 3 - TaxpayerForm 2555 - Foreign Earned Income, Pages 1, 2 - SpouseForm 2555 - Foreign Earned Income, Page 3 - SpouseForm 3468 - Investment CreditForm 3800 - General Business CreditForm 3800, page 3 - General Business Credits Or Eligible Small Business CreditsForm 3903 - Moving ExpensesForm 4136 - Credit for Federal Tax Paid On FuelsForm 4137 - Social Security and Medicare Tax on Unreported Tip Income - TaxpayerForm 4137 - Social Security and Medicare Tax on Unreported Tip Income - SpouseForm 4255 - Recapture of Investment CreditForm 4684 - Casualties and Thefts Page 1Form 4684 - Casualties and Thefts Page 2Form 4684 - Casualties and Thefts Page 3Form 4684 - Casualties and Thefts Page 4Form 4797 - Sales of Business Property Page 1Form 4797 - Sales of Business Property Page 2Form 4835 - Farm Rental Income and ExpensesForm 4952 - Investment Interest Expense DeductionForm 4972 - Tax on Lump-Sum Distributions - TaxpayerForm 4972 - Tax on Lump-Sum Distributions - SpouseForm 5329 - Additional Taxes on Qualified Plans (Including IRAs) and Other Tax-Favored Accounts - TaxpayerForm 5329 - Additional Taxes on Qualified Plans (Including IRAs) and Other Tax-Favored Accounts - SpouseForm 5405 - Repayment of the First-Time Homebuyer CreditForm 5695 - Residential Energy CreditsForm 5884 - Work Opportunity CreditForm 6251 - Alternative Minimum Tax - IndividualsForm 6252 - Installment Sale IncomeForm 6765 - Credit for Increasing Research ActivitiesForm 6765 - Credit for Increasing Research Activities - Page 2Form 6781 - Gains and Losses from Section 1256 Contracts and StraddlesForm 8082 - Notice of Inconsistent Treatment or Administrative Adjustment Request (AAR)Form 8275 - Disclosure StatementForm 8275-R - Regulation Disclosure StatementForm 8283 - Noncash Charitable ContributionsForm 8379 - Injured Spouse AllocationForm 8396 - Mortgage Interest CreditForm 8453 - U.S. Individual Income Tax Transmittal for an IRS e-file ReturnForm 8582 - Passive Activity Loss Limitations Page 1Form 8582 - Passive Activity Loss Limitations Page 2Form 8582 - Passive Activity Loss Limitations Page 3Form 8582-CR - Passive Activity Credit LimitationsForm 8586 - Low-Income Housing CreditForm 8594 - Asset Acquisition Statement Under Section 1060Form 8606 - Nondeductible IRAs - TaxpayerForm 8606 - Nondeductible IRAs - SpouseForm 8609-A - Annual Statement for Low-Income Housing CreditForm 8611 - Recapture of Low-Income Housing CreditForm 8615 - Tax for Certain Children Who Have Unearned IncomeForm 8689 - Allocation of Individual Income Tax to the U.S. Virgin IslandsForm 8697 - Interest Computation Under the Look-Back Method for Completed Long-Term ContractsForm 8801 - Credit for Prior Year Minimum Tax - Individuals, Estates and TrustsForm 8814 - Parents' Election to Report Child's Interest and DividendsForm 8815 - Exclusion of Interest From Series EE and I U.S. Savings Bonds Issued After 1989Form 8820 - Orphan Drug CreditForm 8824 - Like-Kind ExchangesForm 8826 - Disabled Access CreditForm 8828 - Recapture of Federal Mortgage SubsidyForm 8833 - Treaty-Based Return Position Disclosure Under Section 6114 or 7701(b)Form 8834 - Qualified Electric Vehicle CreditForm 8839 - Qualified Adoption ExpensesForm 8844 - Empowerment Zone Employment CreditForm 8845 - Indian Employment CreditForm 8846 - Credit for Employer Social Security and Medicare Taxes Paid on Certain Employee TipsForm 8853 - Archer MSAs and Long-Term Care Insurance Contracts Page 1Form 8853 - Archer MSAs and Long-Term Care Insurance Contracts Page 2Form 8859 - District of Columbia First-Time Homebuyer CreditForm 8862 - Information to Claim Certain Refundable Credits After DisallowanceForm 8862 - Additional Information Statement for Part III and Part IVForm 8863 - Education CreditsForm 8863 Page 2 - Student and Educational Institution InformationForm 8880 - Credit for Qualified Retirement Savings ContributionsForm 8881 - Credit for Small Employer Pension Plan Startup CostsForm 8885 - Health Coverage Tax Credit - TaxpayerForm 8885 - Health Coverage Tax Credit - SpouseForm 8886 - Reportable Transaction Disclosure StatementForm 8888 - Allocation of Refund (Including Savings Bond Purchases)Form 8889 - Health Savings Accounts (HSAs) - TaxpayerForm 8889 - Health Savings Accounts (HSAs) - SpouseForm 8906 - Distilled Spirits CreditForm 8908 - Energy Efficient Home CreditForm 8910 - Alternative Motor Vehicle CreditForm 8911 - Alternative Fuel Vehicle Refueling Property CreditForm 8917 - Tuition and Fees DeductionForm 8919 - Uncollected Social Security and Medicare Tax on Wages - TaxpayerForm 8919 - Uncollected Social Security and Medicare Tax on Wages - SpouseForm 8932 - Credit for Employer Differential Wage PaymentsForm 8933 - Carbon Oxide Sequestration CreditForm 8936 - Qualified Plug-In Electric Drive Motor Vehicle CreditForm 8936 - Qualified Plug-In Electric Drive Motor Vehicle Credit - Additional Vehicles StatementForm 8938 - Statement of Specified Foreign Financial AssetsForm 8938 - Statement of Specified Foreign Financial Assets - Continuation StatementForm 8941 - Credit for Small Employer Health Insurance Premiums - TaxpayerForm 8941 - Credit for Small Employer Health Insurance Premiums - SpouseForm 8949 - Sales and Other Dispositions of Capital Assets - Page 1Form 8949 - Sales and Other Dispositions of Capital Assets - Page 2Form 8959 - Additional Medicare TaxForm 8960 - Net Investment Income Tax - Individuals, Estates, and TrustsForm 8962 - Premium Tax Credit (PTC)Form 8995 - Qualified Business Income Deduction Simplified ComputationForm 8995 - Qualified Business Income Deduction Simplified Computation - Continuation StatementForm 8995A - Qualified Business Income DeductionForm 8995A - Qualified Business Income Deduction - Continuation StatementForm 8995A Schedule A - Specified Service Trades or BusinessesForm 8995A Schedule A - Specified Service Trades or Businesses - Continuation StatementForm 8995A Schedule B - Aggregation of Business OperationsForm 8995A Schedule C - Loss Netting and CarryforwardForm 8995A Schedule C - Loss Netting and Carryforward - Continuation StatementForm 8995A Schedule D - Special Rules for Patrons of Agricultural or Horticultural CooperativesForm 8995A Schedule D - Special Rules for Patrons of Agricultural or Horticultural Cooperatives - Continuation StatementForm 9465 - Installment Agreement RequestForm 1040-ES - Individual Estimated Tax, Voucher 1Form 1040-ES - Individual Estimated Tax, Voucher 2Form 1040-ES - Individual Estimated Tax, Voucher 3Form 1040-ES - Individual Estimated Tax, Voucher 4