Form 4137 - Social Security Medicare Tax On Unreported Tip Income

Form 4137 is used to calculate and report the Social Security and Medicare taxes owed on unreported tip income. This form is specifically for individuals who receive tips that were not reported to their employer, which may include those working in service industries such as restaurants, bars, and salons.

When filling out Form 4137, taxpayers need to provide details about the unreported tips, including:

• The total amount of tips received.
• Any tips reported to the employer.
• The applicable tax rates for Social Security and Medicare.

The form helps determine the additional taxes owed to ensure compliance with federal tax regulations regarding unreported income. It is essential for taxpayers to accurately report this income to avoid penalties and ensure proper contributions to Social Security and Medicare programs.