|
06-29-2023, 09:32 AM
|
|
Sage
|
Join Date: Nov 2020
Location: Village of Hillsborough
Posts: 7,342
Thanks: 2,278
Thanked 7,714 Times in 3,027 Posts
|
|
Quote:
Originally Posted by retiredguy123
While technically correct, I suspect that there is a lot of underreporting of tips to the employers, and the employers rely mostly on the allocated tip calculation to report tip income. Note that the allocated tip amount on the W-2 is added to the total wages and is therefore taxed for the FICA taxes.
|
Am I misreading the document I linked?
If your employer allocated tips to you, then the allocated tips are shown separately in Box 8 of your Form W-2, Wage and Tax Statement. They are not included in Box 1 (Wages, tips, other compensation), Box 5 (Medicare wages and tips), or Box 7 (Social security tips) of your Form W-2.
Generally, you must report the tips allocated to you by your employer on your income tax return. Attach Form 4137, Social Security and Medicare Tax on Unreported Tip Income, to Form 1040, U.S. Individual Income Tax Return, or Form 1040-SR, U.S. Tax Return for Seniors, to report tips allocated by your employer (in Box 8 of Form W-2). (emphasis added)
__________________
Why do people insist on making claims without looking them up first, do they really think no one will check? Proof by emphatic assertion rarely works.
Confirmation bias is real; I can find any number of articles that say so.
Victor, NY - Randallstown, MD - Yakima, WA - Stevensville, MD - Village of Hillsborough
|