Form 4137, titled “Social Security and Medicare Tax on Unreported Tip Income,” is a tax form used by employees to report and pay their share of Social Security and Medicare taxes on unreported tip income. This form is typically used by food and beverage industry employees who receive tips directly from customers but fail to report them to their employers for tax withholding purposes. Form 4137 allows these employees to calculate and report the Social Security and Medicare taxes owed on their unreported tip income, ensuring compliance with tax laws and regulations.
The primary purpose of Form 4137 is to help employees who receive tip income accurately report and pay their taxes, particularly their share of Social Security and Medicare taxes. By using this form, employees can avoid underreporting their income and potentially facing penalties from the Internal Revenue Service (IRS). Form 4137 provides a structured process for calculating and reporting unreported tip income, helping employees fulfill their tax obligations and maintain compliance with tax laws related to tip reporting.
Other IRS Forms for Individuals
Here, we have plenty of other forms that you might need as an individual taxpayer.
We have outlined an illustrated form compilation guide for you to make the filing process a bit easier. Please refer to it below.
Enter Your Details
Start filling out the form by filling in your full name and Number of Social Security.
Fill in the Tip Information
If you work for several companies, then the data on each must be provided separately.
You must specify the following data:
List All Tips For 2019
You need to add up all tips earned in 2019. This should include tips:
Enter the Tip Amount Reported to the Employer
You can rewrite the number from your W-2.
Calculate the Sum of Additional Tips
Following the instructions for calculations, you will receive the amount for which you must calculate taxes.
Get the Sum That Is Subject to Medicare Tax
On point 5, enter the tip amount that was less than $20 per month. Then subtract the metrics as written on line 6 and write down the result.
Point 7 is already filled in; you do not need to touch or change it.
Get the Amount That is Subject to Social Security Tax
Enter in point 8 the result of the addition of all wages you specified in W-2.
Enter in point 9 the result obtained by subtracting the indicated values. If you get a negative number, then write in zero. Then compare the indicators from points 6 and 9, and you should enter the lower number in point 10.
Get Tax Amounts
By following the instructions on points 11 and 12, you will receive the exact tax amounts. On point 13, you will receive additional taxes, which must be reported on the rest of the documents.
