4137x Apr 2026

: The completed form must be attached to your annual income tax return . The calculated tax is typically reported on Schedule 2 (Form 1040) . Consequences of Non-Compliance

: The form applies a 6.2% Social Security tax (up to a wage limit, such as $176,100 for 2025) and a 1.45% Medicare tax on every dollar of unreported tips . : The completed form must be attached to

: Tips under $20 in a month don't need to be reported to your employer, but they still must be included as income on your Form 1040 . Filing Mechanics : Tips under $20 in a month don't

: It determines the employee's share of FICA (Social Security and Medicare) taxes on tips that weren't taxed during the year . IRS is the tax document used to calculate

For more specific guidance, you can review IRS Publication 531 on reporting tip income .

IRS is the tax document used to calculate and report the Social Security and Medicare taxes owed on unreported tip income . This includes cash tips, noncash tips, and "allocated tips" shown in Box 8 of your Form W-2 that were not previously reported to your employer . Core Purpose of Form 4137

: Using IRS Form 4137 fulfills your legal responsibility to report all income and helps avoid IRS audits or penalties . Who Must File