What this line means
The Social Security wage base for 2025 ($176,100) minus your total Social Security wages and tips already taxed through payroll withholding. This is the remaining room under the cap before your earnings are no longer subject to Social Security tax. If this amount is zero, you owe no additional Social Security tax on your unreported tips.
Does this apply to you?
- You earned wages and tips during the year and need to determine if you have exceeded the Social Security wage base
- You worked multiple jobs and your combined wages approach or exceed the annual wage base
- You are a high-earning tipped worker whose total compensation puts you near the cap
Easy to overlook
The wage base includes wages from all employers, not just tipped jobs If you worked a salaried job earning $150,000 and also worked a weekend bartending gig, your remaining Social Security wage base for tip purposes is only $26,100 ($176,100 minus $150,000). Filers with multiple income streams forget that the cap applies to total covered earnings across all jobs. 1 IRS Form 4137 instructions — Line 10
The wage base changes every year The Social Security wage base is adjusted annually for inflation. Using a prior year’s cap produces the wrong result on line 10. For 2025, the cap is $176,100. Check the current year’s amount in the Form 4137 instructions or IRS Publication 15. 2 IRS Publication 15 — Social Security wage base
Watch out for this
Using your total wages from W-2 Box 1 instead of Social Security wages from Box 3 when calculating the amount already taxed. Box 1 includes certain income not subject to Social Security tax (like some fringe benefits), while Box 3 shows the actual wages on which Social Security tax was withheld. Using Box 1 overstates wages already taxed and understates your remaining wage base.
Footnotes
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IRS Form 4137 Instructions, Line 10. https://www.irs.gov/instructions/i4137 ↩
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IRS Publication 15 (Circular E), Employer’s Tax Guide, Social Security Wage Base. https://www.irs.gov/pub/irs-pdf/p15.pdf ↩