IRS Form 4137: Social Security and Medicare Tax on Unreported Tip Income

Last reviewed:

Use the IRS Form 4137 – Reporting and Paying Tax on Unreported Tips Tax Form Calculator IRS Form 4137 – Reporting and Paying Tax on Unreported Tips as a stand alone tax form calculator to quickly calculate specific amounts for your 2026 4137 state tax return. Alternatively, you can use one of our Combined Federal and State Tax Estimators to quickly calculate your salary, tax, and take-home pay.

What is IRS Form 4137?

Form 4137 is used by employees to figure and pay the Social Security and Medicare tax on tips they received but did not report to their employer. This includes cash tips, credit card tips, and allocated tips listed on your W-2 (Box 8). Filing this form ensures your tip income is correctly reported and counted towards future Social Security benefits.

This form is attached to your annual tax return, and the calculated tax is added to your total tax liability. Underreporting or failing to file could lead to penalties and affect your Social Security earnings record.

When to File Form 4137

You must file Form 4137 if any of the following apply:

You received $20 or more in tips in a single month and did not report them to your employer
Your W-2 includes allocated tips in Box 8
You have tip income that was not included in wages subject to FICA

All tips, even if paid in cash, are considered taxable income under IRS rules.

Social Security and Medicare Tax on Unreported Tip Income
Name of person who received tips. If married, complete a separate Form 4137 for each spouse with unreported tips.				Social security number
1	(a) Name of employer to whom you were required to, but did not report all your tips (see instructions)	(b) Employer identification number (see instructions)	(c) Total cash and change tips you received (including unreported tips) (see instructions)	(d) Total cash and charge tips you reported to your employer
A
B
C
D
E
2	Total cash and charge tips you received in 2016. Add the amounts from line 1, column (c)
3	Total cash and charge tips you reported to your employer(s) in 2016. Add the amounts from line 1, column (d)			3
4	Subtract line 3 from line 2. This amount is income you must include in the total on Form 1040, line 7; Form 1040NR, line 8; or Form 1040NR-EZ, line 3			4
5	Cash and charge tips you received but did not report to your employer because the total was less than $20 in a calendar month (see instructions)			5
6	Unreported tips subject to Medicare tax. Subtract line 5 from line 4			6
7	Maximum amount of wages (including tips) subject to social security tax			7
8	Total social security wages and social security tips (total of boxes 3 and 7 shown on your Form(s) W-2) and railroad retirement (RRTA) compensation (subject to 6.2% rate) (see instructions)			8
9	Subtract line 8 from line 7. If line 8 is more than line 7, enter -0-			9
10	Unreported tips subject to social security tax. Enter the smaller of line 6 or line 9. If you received tips as a federal, state, or local government employee, see instructions			10
11	Multiply line 10 by (social security tax rate)			11
12	Multiply line 6 by (Medicare tax rate)			12
13	Add lines 11 and 12. Enter the result here and on Form 1040, line 58; Form 1040NR, line 56; or Form 1040NR-EZ, line 16 (Form 1040-SS and 1040-PR filers, see instructions.)			13

How to Complete Form 4137

Key lines on Form 4137 include:

Line 1: Total cash and charge tips received
Line 2: Tips reported to your employer
Line 4: Total unreported tips (Line 1 minus Line 2)
Line 5: Amount of unreported tips subject to Social Security tax, factoring in wage base limits
Line 6: Amount of unreported tips subject to Medicare tax
Line 9: Total Social Security and Medicare tax due on the unreported amount

The calculated tax from Form 4137 is entered on Schedule 2 (Form 1040), Line 5.

Last reviewed: : If you believe this form requires an update, please contact us.

Important Notes

Form 4137 helps ensure your full earnings are credited toward Social Security. It also keeps you compliant with IRS regulations regarding taxable income.

Keep accurate records of daily tips received to make completing this form easier. The IRS recommends using Form 4070A or a similar tip log.

This form is only for employees. If you are self-employed, report tip income as part of your business income and pay self-employment tax using Schedule SE.

For full guidance, download the latest Form 4137 PDF from the IRS.

Frequently Asked Questions

Can I estimate the General Business Credit?

Start with Form 3800 and then reflect the credit here.

How much would a 401(k) contribution change my net?

Model it with the 401(k) Calculator then rerun this page with your pre-tax amount.

Considering an IRS Offer in Compromise?

Read through Form 656-B to understand eligibility and steps.

What does FICA include?

FICA includes Social Security and Medicare payroll taxes withheld from employee wages.

Is there a quick pay-frequency comparison?

Yes—switch frequency on this page; for employer filings see 941 vs 944.

Important Notes

All calculations are estimates for guidance only. Always review your return and consider professional advice when submitting official filings.