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Official form guide
Form 4137: Social Security and Medicare Tax on Unreported Tip Income
IRS Form 4137 is used to figure the social security and Medicare tax owed on tips that were not reported to an employer. This form applies to employees who received tips of $20 or more in a calendar month, and the social security tax rate remains at 6.2% for 2025.
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IRS Form 4137 - Social Security and Medicare Tax on Unreported Tip Income
IRS Form 4137 is used to figure the social security and Medicare tax owed on tips that were not reported to an employer. This form applies to employees who received tips of $20 or more in a calendar month, and the social security tax rate remains at 6.2% for 2025.
Risk Radar
Scan points- 1Do not use Form 4137 for Railroad Retirement Tax Act tips; report those to your employer instead.
- 2Failing to include all cash and charge tips in Column (c) of the Form 4137.
- 3Not properly identifying the employer's EIN or using 'Applied For' in Column (b).
- 4Incorrectly calculating Line 9, especially if it exceeds Line 7.
- 5Omitting wages/tips subject to RRTA compensation from Line 8 calculation.
Plain English
This form helps taxpayers calculate the Social Security and Medicare taxes on tips they did not report directly to their employer. By filing Form 4137, the income from those unreported tips gets credited to the filer's social security record. This ensures the correct amount of tax is calculated for their annual return.
Submission Date
- Filing date: 2025-12-08 14:27:20
- Preparation window: collect IDs, supporting records, and signatures in advance.
- Final review: verify names, dates, and required fields before submission.
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What this form is for
- Use this form when determining the social security and Medicare tax owed on tips that were not reported to an employer (including allocated tips shown on Form(s) W-2).
- Do not use it when tips received are for work covered by the Railroad Retirement Tax Act, as those must be reported directly to the employer.
- Check Form 8919 instead when you believe you are an employee and received Form 1099-MISC or Form 1099-NEC instead of a Form W-2.
Form selector
Use this form or another form?
Tips were reported but tax wasn't fully collected
The uncollected portion of the social security and Medicare tax is identified here.
✓ Check Box 12 on your Form W-2
You received tips for work covered by RRTA
You must report these tips to your employer to get railroad retirement credit.
✓ Check instructions regarding RRTA
Your employment documentation is a 1099 instead of a W-2
Use this form to report the social security and Medicare tax on that income instead of using Form 4137.
✓ Check if you should use Form 8919
Deadline or filing window
The filing trigger occurs when an individual receives cash and charge tips of $20 or more in a calendar month, or when W-2 box 8 shows allocated tips. While the form itself is not assigned a specific due date, it must be completed to report income received during that calendar month for the tax year (2025).
Checklist
What you need before filling it out
Name of person who received tips
Your full name · Line 1
Total cash and charge tips you received (Line 2)
Sum of amounts from line 1, column (c) · Line 2
Unreported tips subject to Medicare tax (Line 6)
Subtract line 5 from line 4 · Line 6
Maximum amount of wages (including tips) subject to SS tax (Line 7)
$176,100 for 2025 · Line 7
Penalty for not reporting tips
50% of the social security, Medicare, and Additional Medicare Taxes due on those tips · Penalty section (p.2)
Before you submit
- 1Complete a separate row for each employer listed on Form 4137, line 1.
- 2Ensure the total tips reported (Line 2) is correctly totaled from Line 1, column (c).
- 3Verify that Line 3 accurately subtracts the total reported tips from Line 2.
- 4Confirm that Line 5 captures all cash/charge tips less than $20 received in a calendar month.
- 5Check that Line 6 is calculated by subtracting Line 5 from Line 4 (Line 2 minus Line 3).
- 6Verify the Maximum amount of wages subject to social security tax on Line 7 reads $176,100 for 2025.
- 7If filing with a spouse, confirm you have completed a separate Form 4137 for that spouse.
How to file this form
- 1Complete Line 1 by listing each employer and the tips received/reported for 2025. Complete lines 2 through 13 on only one Form 4137.
- 2Calculate Line 2 (Total tips received), then calculate Line 3 (Total tips reported) using the amounts from Line 1, column (c) and (d).
- 3Determine Lines 5, 6, and 7 by accounting for tips under $20 per month, finding unreported Medicare tips (Line 6), and stating the maximum SS wage amount (Line 7).
- 4Attach Form 4137 to your tax return (Form 1040, 1040-SR, or 1040-NR) and report the calculated income on Line 1c of that form.
Known limitations
- 1The IRS Form 4137 should not be used as a substitute for Form W-2.
- 2If an individual believes they are an employee but received Form 1099-MISC or Form 1099-NEC instead of Form W-2, this form is not to be used for reporting the social security and Medicare tax on that income; Form 8919 should be used instead.
- 3If tips were allocated on a Form W-2, box 8, Form 4137 must be filed because those tips must be reported as income.
Field map
Compact field-by-field guide
General Info
2 items
Full legal name and taxpayer identification number (SSN or EIN).
Current mailing address.
Details
2 items
Complete all applicable sections of this form according to the official IRS instructions.
Enter the relevant dollar amount if this form involves tax calculation.
Certification
1 items
Read and acknowledge any certifications required by this form.
Signatures
1 items
Sign and date. Unsigned forms cannot be processed.
Almost done reviewing the fields?
Fillable formOpen in Editor->The current edition is 20/25, and users can find the latest information regarding Form 4137 at www.irs.gov/Form4137. For 2025, the maximum wages and tips subject to social security tax increases to $176,100.
What changed or needs a fresh check
- Edition date — confirm the revision reads 20/25.
- IRS website link — confirm www.irs.gov/Form4137 is active for latest info.
- Social Security Tax Rate — confirm the rate remains at 6.2% for 2025.
- Maximum Wages Subject to SS Tax — confirm the amount is $176,100 for 2025.
Quick Facts
Downloads
After you file
- 1The social security and Medicare tips reported via IRS Form 4137 will be credited to the filer's social security record, which is used to determine benefits.
- 2The tax calculated on Form 4137 must be included as a tax on Schedule 2 (Form 1040), line 5, or Form 1040-SS, Part I, line 6a.
- 3If the failure to report tips was due to reasonable cause and not willful neglect, this can prevent being charged a penalty.
- 4A penalty equal to 50% of the social security, Medicare, and Additional Medicare Taxes due on those unreported tips may be charged if tips were not reported as required.
Sources
- SRCForm 4137 is used to figure the social security and Medicare tax owed on tips you didn’t report to your employer (Instructions p.1).
- SRCYou 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 (Form p.1).
- SRCFor 2025, the maximum wages and tips subject to social security tax increases to $176,100 (Form p.1).
- SRCThe social security tax rate an employee must pay on tips remains at 6.2% for 2025 (Form p.1).
- SRCA penalty equal to 50% of the social security, Medicare, and Additional Medicare Taxes due on those tips may be charged if you didn’t report tips as required (Form p.2).
- SRCThe tax calculated must be included as a tax on Schedule 2 (Form 1040), line 5, or Form 1040-SS, Part I, line 6a (Form p.1).
- SRCIf you received tips as a federal, state, or local government employee, see instructions for specific guidance (Form p.1).
Common confusion points
Who should file Form 4137?
An individual must file this form if they received cash and charge tips of $20 or more in a calendar month and did not report all those tips to their employer.
→ Check the filing requirement against your monthly tip earnings.
What is the maximum amount subject to social security tax for 2025?
The maximum wages and tips subject to social security tax increases to $176,100 for 2025.
→ Confirm this figure on Form 4137, line 7.
How do I calculate the amount of unreported tips subject to social security tax (Line 10)?
Enter the smaller of Line 6 (Total cash and charge tips you received in 2025) or Line 9 (Result of subtracting Line 8 from Line 7).
→ Compare the two figures on Form 4137, line 10.
What is the penalty for not reporting tips?
A penalty equal to 50% of the social security, Medicare, and Additional Medicare Taxes due on those tips may be charged.
→ Verify this percentage on Form 4137, page 2.
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Questions about IRS Form 4137
What is IRS Form 4137 used for?
This form helps taxpayers calculate the Social Security and Medicare taxes on tips they did not report directly to their employer. By filing Form 4137, the income from those unreported tips gets credited to the filer's social security record. This ensures the correct amount of tax is calculated for their annual return.
Who must file IRS Form 4137?
An individual must file IRS Form 4137 if they received cash and charge tips of $20 or more in a calendar month but did not report all those tips to their employer. The form must also be filed if the filer's Form(s) W-2, box 8, shows allocated tips that require reporting as income.
What information does IRS Form 4137 require?
The form collects details such as total social security wages (Line 7), unreported tips subject to social security tax (Line 10), and calculates the resulting taxes on Line 13. Attachments must include the filer's name, SSN, and the calendar year (2025).
When is IRS Form 4137 due?
The official source does not specify a due date or filing deadline for IRS Form 4137 as a whole; however, it is used to report income from tips received during a specific calendar month.
Where do I file IRS Form 4137?
The instructions do not list a specific mailing address or service center for submission. Filer should go to www.irs.gov/Form4137 for the latest information regarding where to send Form 4137.
How do I complete IRS Form 4137?
The completion sequence requires entering employer details (name in Column (a), EIN/“Applied For” in Column (b)) and listing all cash and charge tips received in Column (c). The filer must then calculate specific totals, such as Line 10 (unreported tips) and finally add the resulting taxes on Line 13. A signature is required on the top of any attachment.
What happens if IRS Form 4137 is filed incorrectly?
If the form is filed incorrectly, the social security and Medicare tips may not be credited to the filer's social security record, which impacts future benefit calculations. Failure to use this form when required means these taxes are not properly accounted for on the tax return.
Who should file Form 4137?
An individual must file this form if they received cash and charge tips of $20 or more in a calendar month and did not report all those tips to their employer. Check the filing requirement against your monthly tip earnings.
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