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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.  Instructions for Form 8846 are on page 2 of the form.

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.

To create Form 8846 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 Credits dropdown, and click the Other credits dropdown that appears, then click General Business Credit - Form 3800.
  3. Click the checkbox next to Form 8846.
  4. Click + Add Form 8846 to create a new copy of the form or click Edit to edit a form already created (desktop program: click Review instead of Edit).
  5. 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.

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