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Certain food and beverage establishments can use Form 8846 Credit for Employer Social Security and Medicare Taxes Paid on Certain Employee Tips 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 General Business Credit.

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

  • 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.
  • During the tax year, you paid or incurred employer social security and Medicare taxes on those tips.

See the instructions for Form 8846, on page 2, 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 click Federal.
  2. Click Other Credits in the Federal Quick Q&A Topics menu to expand, click Other credits to expand, then click General Business Credit - Form 3800.
  3. Check Form 8846, then click Continue.
  4. Click + Add Form 8846 to create a new copy of the form or click Edit to review a form already created.
  5. Enter the applicable numbers directly on the form.
    Note. If you alter any blue numbers (which are calculated by the program), you will NOT be allowed to electronically file your return.

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

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