The National Directory of Certified Public Accountants

Ask A CPA - Tip Income Reporting

Form 4137 - Employee Unreported Tip Reporting To IRS

If you received $20 or more in cash and charge tips in a month from any one job and did not report all of those tips to your employer, you must report the social security and Medicare taxes on the unreported tips as additional tax on your return. To report these taxes, use Form 4137, Social Security and Medicare Tax on Unreported Tip Income, to figure these taxes. The unreported tips must be included as Wages on Form 1040, Line 7.

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