Form 4137
Form 4137
Social Security and Medicare Tax on Unreported Tip Income
Every line is explained below in plain English — click any line to see what it means, who needs to fill it in, and what people commonly overlook.
Unreported Tips
- 1 Total Cash Tips Received The total amount of cash and charge tips you received during the year from all jobs where you earned tips.
- 2 Tips Reported to Employer The total amount of tips you reported to your employer during the year.
- 3 Unreported Tips Amount The difference between your total cash tips received (line 1) and the tips you reported to your employer (line 2).
Tax Computation
- 6 Social Security Tips from W-2 The total Social Security tips already reported on all your W-2 forms (Box 7).
- 7 Total Tips Subject to Social Security Tax The combined total of your unreported tips (from Part I) and the Social Security tips already reported on your W-2s.
- 10 Remaining Social Security Wage Base The Social Security wage base for 2025 ($176,100) minus your total Social Security wages and tips already taxed through payroll withholding.
- 11 Tips Subject to Social Security Tax The smaller of your total tips subject to Social Security tax (line 7) or your remaining Social Security wage base (line 10).
- 12 Social Security Tax on Unreported Tips The Social Security tax you owe on unreported tips, calculated by multiplying line 11 by 6.2% (the employee share of Social Security tax).
- 13 Medicare Tax on Unreported Tips The Medicare tax you owe on unreported tips, calculated by multiplying line 5 (total unreported tips from all jobs) by 1.45%.