Form 4137 - Tip Income - Social Security and Medicare Tax

If you enter an amount in Box 8 of Form W-2 Wage and Tax Statement for Allocated Tips, the TaxAct program will transfer the amount to Form 4137 Social Security and Medicare Tax on Unreported Tip Income for the calculation of social security and Medicare tax on the tips to be reported on Line 5 of Schedule 2 (Form 1040) Additional Taxes.

If you received other tips that weren't reported on your Form W-2, then you need to report them on Form 4137 too.

To access Form 4137 in the TaxAct Program:

  1. From within your TaxAct return (Online or Desktop), click Federal (on smaller devices, click in the top left corner of your screen, then click Federal).
  2. Click the Other Income dropdown, then click Taxes on tip income.
  3. On the screen titled Unreported or Allocated Tips - Other Tips, click Edit next to the employer.
  4. Continue with the interview process to enter your information.

Note that any link in the information above is updated each year automatically and will take you to the most recent version of the webpage or document at the time it is accessed.