Form 4137 2023

Social Security and Medicare Tax 

on Unreported Tip Income

Department of the Treasury 

Internal Revenue Service

Attach to your tax return. 

Go to www.irs.gov/Form4137 for the latest information.

OMB No. 1545-0074

Attachment 

Sequence No. 24

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 didn’t report all your tips (see instructions) 

(b) Employer

identification number 

(see instructions) 

(c) Total cash and 

charge 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 2023. Add the amounts from line 1, 

column (c) . . . . . . . . . . . . . . . . . . . . . . 2 

3 Total cash and charge tips you reported to your employer(s) in 2023. Add the amounts from line 1, 

column (d) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3

4 Subtract line 3 from line 2. You must include this amount on line 1c of Form 1040, 1040-SR, or 1040-NR. 

See Allocated tips on page 2 . . . . . . . . . . . . . . . . . . . . . . . . . 4

5 Cash and charge tips you received but didn’t 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 . . 7 160,200

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 0.062 (social security tax rate) . . . . . . . . . . . . . . . . . . 11 

12 Multiply line 6 by 0.0145 (Medicare tax rate) . . . . . . . . . . . . . . . . . . . 12 

13 Add lines 11 and 12. Enter here and include as tax on Schedule 2 (Form 1040), line 5; Form 1040-SS

(sp), Part I, line 6; or Form 1040-SS, Part I, line 6. See your tax return instructions . . . . . . . 13 

General Instructions 

Future Developments

For the latest information about developments related to Form 

4137 and its instructions, such as legislation enacted after they 

were published, go to www.irs.gov/Form4137. 

What’s New

For 2023, the maximum wages and tips subject to social 

security tax increases to $160,200. The social security tax rate 

an employee must pay on tips remains at 6.2%.

Reminder

A 0.9% Additional Medicare Tax applies to Medicare wages, 

Railroad Retirement Tax Act (RRTA) compensation, and selfemployment income over a threshold amount based on your 

filing status. Use Form 8959, Additional Medicare Tax, to figure 

this tax. See the Instructions for Form 8959 for more information 

on the Additional Medicare Tax.

Purpose of form. Use Form 4137 only to figure the social 

security and Medicare tax owed on tips you didn’t report to your 

employer, including any allocated tips shown on your Form(s) 

W-2 that you must report as income. You must also report the 

income on Form 1040, 1040-SR, or 1040-NR, line 1c. By filing 

this form, your social security and Medicare tips will be credited 

to your social security record (used to figure your benefits). 

Don’t use Form 4137 as a substitute Form W-2.

▲!

CAUTION

If you believe you’re an employee and you received 

Form 1099-MISC, Miscellaneous Information, or Form 

1099-NEC, Nonemployee Compensation, instead of 

Form W-2, Wage and Tax Statement, because your 

employer didn’t consider you an employee, don’t use this form 

to report the social security and Medicare tax on that income. 

Instead, use Form 8919, Uncollected Social Security and 

Medicare Tax on Wages. 

Who must file. You must file Form 4137 if you received cash 

and charge tips of $20 or more in a calendar month and didn’t 

report all of those tips to your employer. You must also file Form 

4137 if your Form(s) W-2, box 8, shows allocated tips that you 

must report as income.

For Paperwork Reduction Act Notice, see your tax return instructions. Cat. No. 12626C Form 4137 (2023) 
Form 4137 (2023) Page 2 

Allocated tips. You must report all your tips from 2023, 

including both cash tips and noncash tips, as income on Form 

1040, 1040-SR, or 1040-NR. Any tips you reported to your 

employer in 2023 are included in the wages shown on your 

Form W-2, box 1. Enter on Form 1040, 1040-SR, or 1040-NR, 

line 1c, only the tips you received in 2023 and didn’t report to 

your employer. This should include any allocated tips shown on 

your Form(s) W-2, box 8, unless you have adequate records to 

show that your unreported tips are less than the amount in box 

8. Although allocated tips are shown on your Form W-2, they 

aren’t included in box 1 on that form and no tax is withheld from 

these tips. 

Tips you must report to your employer. If you receive $20 or 

more in cash tips (defined next), you must report 100% of those 

tips to your employer through a written report. Cash tips include 

tips paid by cash, check, debit card, and credit card. The 

written report should include tips your employer paid to you for 

charge customers, tips you received directly from customers, 

and tips you received from other employees under any tipsharing arrangement. If, in any month, you worked for two or 

more employers and received tips while working for each, the 

$20 rule applies separately to the tips you received while 

working for each employer and not to the total you received. 

You must report your tips to your employer by the 10th day of 

the month following the month you received them. If the 10th 

day of the month falls on a Saturday, Sunday, or legal holiday, 

give your employer the report by the next business day. For 

example, because August 10, 2024, is a Saturday, you must 

report your tips received in July 2024 by August 12, 2024.

Employees subject to the Railroad Retirement Tax Act. Don’t 

use Form 4137 to report tips received for work covered by the 

Railroad Retirement Tax Act. To get railroad retirement credit, 

you must report these tips to your employer. 

Payment of tax. Tips you reported to your employer are subject 

to social security and Medicare tax (or railroad retirement tax), 

Additional Medicare Tax, and income tax withholding. Your 

employer collects these taxes from wages (excluding tips) or 

other funds of yours available to cover them. If your wages 

weren’t enough to cover these taxes, you may have given your

employer the additional amounts needed. Your Form W-2 will 

include the tips you reported to your employer and the taxes 

withheld. If there wasn’t enough money to cover the social 

security and Medicare tax (or railroad retirement tax), your Form 

W-2 will also show the uncollected tax due in box 12 with codes 

A and B. See the instructions for Schedule 2 (Form 1040), line 

13, to see how to report the tax due. If you worked in American 

Samoa, Guam, or the U.S. Virgin Islands, the amount of 

uncollected tax due is identified in box 12 on Form W-2AS, 

W-2GU, or W-2VI with codes A and B. If you worked in Puerto 

Rico, Form 499R-2/W-2PR shows the uncollected tax due in the 

boxes for “Seguro Social no Retenido en Propinas - Uncollected 

Social Security Tax on Tips” and “Contrib. Medicare no 

Retenida en Propinas - Uncollected Medicare Tax on Tips.” 

Unlike the uncollected portion of the regular (1.45%) Medicare 

tax, the uncollected Additional Medicare Tax isn’t reported on 

Form W-2, box 12, with code B. 

Penalty for not reporting tips. If you didn’t report tips to your 

employer as required, you may be charged a penalty equal to 

50% of the social security, Medicare, and Additional Medicare 

Taxes due on those tips. You can avoid this penalty if you can 

show (in a statement attached to your return) that your failure to 

report tips to your employer was due to reasonable cause and 

not due to willful neglect. 

Additional information. See Pub. 531, Reporting Tip Income. 

See Rev. Rul. 2012-18 for guidance on taxes imposed on tips 

and the difference between tips and service charges. You can 

find Rev. Rul. 2012-18, 2012-26 I.R.B. 1032, at 

www.irs.gov/irb/2012-26_IRB#RR-2012-18. 

Specific Instructions 

Line 1. Complete a separate row for each employer. If you had 

more than five employers in 2023, attach a statement that 

contains all of the information (and in a similar format) as 

required on Form 4137, line 1, or complete and attach line 1 of 

additional Form(s) 4137. Complete lines 2 through 13 on only 

one Form 4137. The line 2 and line 3 amounts on that Form 

4137 should be the combined totals of all your Forms 4137 and 

attached statements. Include your name, social security 

number, and calendar year (2023) on the top of any attachment. 

Column (a). Enter your employer’s name exactly as shown on 

your Form W-2.

Column (b). For each employer’s name you entered in column 

(a), enter the employer identification number (EIN) or the words 

“Applied For” exactly as shown on your Form W-2. 

Columns (c) and (d). Include all cash and charge tips you 

received. All of the following tips must be included.

• Total tips you reported to your employer on time. Tips you 

reported, as required, by the 10th day of the month following the 

month you received them are considered income in the month 

you reported them. For example, tips you received in December 

2022 that you reported to your employer after December 31, 

2022, but by January 10, 2023, are considered income in 2023 

and should be included on your 2023 Form W-2 and reported on 

Form 4137, line 1. Report these tips in column (d). 

• Tips you received in December 2023 that you reported to 

your employer after December 31, 2023, but by January 10, 

2024, are considered income in 2024. Don’t include these tips 

on line 1 for 2023. Instead, report these tips on line 1, column 

(d), on your 2024 Form 4137.

• Tips you didn’t report to your employer on time. Report these 

tips in column (d). For example, tips you received in December 

2023 that you reported to your employer after January 10, 2024, 

are considered income in 2023 because you didn’t report them 

to your employer on time. 

• Tips you didn’t report at all (include any allocated tips (see 

Allocated tips, earlier) shown in box 8 on your Form(s) W-2 

unless you can prove that your unreported tips are less than the 

amount in box 8). Report these tips in column (c). These tips are 

considered income to you in the month you actually received 

them. 

• Tips you received that you weren’t required to report to your 

employer because they totaled less than $20 during the month. 

Report these tips in column (c). 

Line 5. Enter only the tips you weren’t required to report to your 

employer because the total received was less than $20 in a 

calendar month. These tips aren’t subject to social security and 

Medicare tax. 

Line 6. Enter this amount on Form 8959, line 2, if you’re 

required to file that form.

Line 8. For railroad retirement (RRTA) compensation, don’t 

include an amount greater than $160,200, which is the amount 

subject to the 6.2% rate for 2023.

Line 10. If line 6 includes tips you received for work you did as a 

federal, state, or local government employee and your pay was 

subject only to the 1.45% Medicare tax, subtract the amount of 

those tips from the line 6 amount only for the purpose of 

comparing lines 6 and 9. Don’t reduce the actual entry on line 6. 

Enter “1.45% tips” and the amount you subtracted on the 

dotted line next to line 10.