Form 8846 - Credit for Employer Social Security and Medicare Taxes Paid on Certain Employee Tips

Certain food and beverage establishments can use Form 8846 to claim a credit for social security and Medicare taxes paid on employee's tips. This credit is part of the general business credit and is reported on Form 3800.

You should only file Form 8846 if you meet both of the following conditions:

  1. You had employees who received tips from customers for providing, delivering, or serving food or beverages for consumption if tipping of employees for delivering or serving food or beverages is customary.
  2. During the tax year, you paid or incurred employer social security and Medicare taxes on those tips.

See the IRS Instructions for Form 8846 for more information.

To enter Form 8846 in TaxAct®:

  1. From within your TaxAct return (Online or Desktop), click Federal. On smaller devices, click in the upper left-hand corner, then select Federal.
  2. Click Other Credits in the Federal Quick Q&A Topics menu to expand the category, then click Other credits at the bottom of the list
  3. Select General Business Credit - Form 3800
  4. Select Form 8846 from the list of credit forms, then click Continue
  5. Click +Add Form 8846 to create a new copy of the form or Review to review a form already created
  6. Enter the applicable numbers directly on the form.
    Note. Only the green numbers should be altered. If you alter any fields with a blue number (which are calculated by the program), you will not be allowed to electronically file your return.