This Form 4137 2026 guide explains the IRS Social Security and Medicare Tax on Unreported Tip Income. Form 4137 calculates covered Social Security and Medicare tax on tip income not fully reported through the employer process. The employee still needs to account for the underlying tip income on the return. Tip reporting and the additional tax calculation should be reconciled with wage statements and tip records.
Reviewed October 31, 2026. This is an independent guide. The version and availability information below identifies the IRS documents used for this page.
What Form 4137 2026 does and who prepares it
An employee uses the form for the unreported tip-related Social Security and Medicare tax items covered by the instructions.
For the connected reporting route, see Form W-2. Keep the role of that document separate from the task explained on this page.
| Official form | Form 4137 |
|---|---|
| IRS title | Social Security and Medicare Tax on Unreported Tip Income |
| Guide period | 2026 |
| Target version | 2026 |
| Availability | Draft — not for filing |
| Last checked | October 31, 2026 |
Get the Form 4137 2026 PDF and check its status
Use the IRS source to confirm the document before completing a real filing. The download link is a reference to the official file; it is not a statement that every copy inside the PDF may be printed and submitted. Follow any instructions about electronic filing, scannable copies, recipient copies or attachments.
Which version of Form 4137 2026 should you use?
The 2026 in the title identifies the tax year or calendar-year information addressed by this guide. For a 2026 income reporting document, the preparation or filing activity may occur in 2027. Do not change the income year simply because the calendar has changed. The exact filing or furnishing date comes from the instructions for this form and the filer circumstances. The linked target PDF is a draft. It may be used to understand the proposed layout, but it is not a form to file. Amounts or instructions still subject to completion must be checked again when the final version is released.
Records to gather for Form 4137 2026
- Daily tip records.
- Amounts reported to each employer.
- Wage statements.
- Employer identification.
- Applicable wage-base information.
Keep a working reconciliation with these records. It should show the source of each reported item, any correction made before filing and the reason a different amount appears on a connected form. This is especially useful when a statement is corrected or a prior-year balance continues into the current calculation.
How to work through Form 4137 2026
- Confirm applicability. Start with the purpose, filer category and version of the form. Complete any eligibility or applicability question before spending time on the numerical calculation.
- Prepare the source workpapers. Gather the records listed below and reconcile their totals. Keep prior-year balances, current-year transactions and estimated payments separate where they serve different purposes.
- Complete dependent calculations first. When a line refers to another form, schedule or worksheet, finish that supporting calculation first. Preserve any classification, limitation and carryforward information.
- Follow the line sequence. Use the actual line labels and arithmetic in the applicable form. A line number from an older version may refer to something different after a revision.
- Reconcile the filing package. Check names, identifying numbers, tax periods, totals and required attachments. Then use the filing method, signature process and deadline that apply to this filer and form.
Form-specific IRS instructions and reporting details
The following points retain the operative wording of the IRS documents linked above. Read each point with its stated conditions and the applicable form version. References to another form or section describe a connected requirement; they do not mean that every reader must file every referenced document.
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.
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.
Reading the lines and boxes
These selected labels come from the linked target PDF. They are a reading aid, not a replacement for the full line instructions or a completed calculation. Match the label and document version before transferring any amount.
| Line or box | Label in the source form | What to check |
|---|---|---|
| 2 | Total cash and charge tips you received in 2026. Add the amounts from line 1, | Follow the stated arithmetic and line references in sequence. Complete the referenced inputs first and retain the worksheet supporting the result. |
| 3 | Total cash and charge tips you reported to your employer(s) in 2026. Add the amounts from line 1, | Follow the stated arithmetic and line references in sequence. Complete the referenced inputs first and retain the worksheet supporting the result. |
| 4 | Subtract line 3 from line 2. Include as income on Form 1040, 1040-SR, or 1040-NR, line 1c. (See | Follow the stated arithmetic and line references in sequence. Complete the referenced inputs first and retain the worksheet supporting the result. |
| 5 | Cash and charge tips you received but didn’t report to your employer because the total was less than | Follow the stated arithmetic and line references in sequence. Complete the referenced inputs first and retain the worksheet supporting the result. |
| 6 | Unreported tips subject to Medicare tax. Subtract line 5 from line 4 | Follow the stated arithmetic and line references in sequence. Complete the referenced inputs first and retain the worksheet supporting the result. |
Further selected fields
| Line or box | Label in the source form | What to check |
|---|---|---|
| 7 | Maximum amount of wages (including tips) subject to social security tax | Check the applicable line instructions and keep the source workpaper with the return records. Transfer only the information that matches the field and reporting period. |
| 8 | Total social security wages and social security tips (total of your Form(s) W-2, | Follow the stated arithmetic and line references in sequence. Complete the referenced inputs first and retain the worksheet supporting the result. |
| 9 | Subtract line 8 from line 7. If line 8 is more than line 7, enter -0- | Follow the stated arithmetic and line references in sequence. Complete the referenced inputs first and retain the worksheet supporting the result. |
| 10 | Unreported tips subject to social security tax. Enter the smaller of line 6 or line 9. If you received tips | Follow the stated arithmetic and line references in sequence. Complete the referenced inputs first and retain the worksheet supporting the result. |
| 11 | Multiply line 10 by 0.062 (social security tax rate) | Follow the stated arithmetic and line references in sequence. Complete the referenced inputs first and retain the worksheet supporting the result. |
A practical example
An employee compares a tip log with the amounts reported to the employer and shown on the wage statement. The employee identifies any difference and follows the income and payroll-tax reporting routes required by the instructions.
This example illustrates the order of the review. It does not assume an unverified deduction, exemption, treaty rate or final tax amount. The applicable form instructions and the actual records determine the result.
Common mistakes to avoid with Form 4137 2026
- Do not treat an additional tax form as a substitute for reporting the income.
- Separate tips already accounted for through payroll from the items this form covers.
- Check each employer and the applicable tax limits.
Questions about Form 4137 2026
Does receiving or downloading this form mean I must file it?
An employee uses the form for the unreported tip-related Social Security and Medicare tax items covered by the instructions. The form purpose and the applicable filing or furnishing conditions determine the action. Downloading a blank PDF does not itself create a filing obligation or establish eligibility for a tax benefit.
Can I file the draft PDF?
No. The linked target is marked as a draft. Use it to understand the proposed layout and prepare records, but wait for the applicable final filing version. Check the IRS source again before using any year-specific amount, worksheet or filing instruction.
What should I do if the underlying information is wrong?
Do not treat an additional tax form as a substitute for reporting the income. Keep the original record and the correction trail. The issuer correction process, an amended return and an updated certificate can be different procedures. Choose the process that matches the document and the actual error.
Which records should I keep with the completed form?
Retain the source documents, applicable worksheets, submitted version and filing or furnishing confirmations. For this form, the working file should include daily tip records, amounts reported to each employer, wage statements. Keep continuing balances and prior-year support for as long as they remain relevant under the applicable recordkeeping rules.
Related forms and next steps
Use these guides when the connected issue applies to your records. Each page has its own purpose, reporting year and availability status.