Allocated Tips - Reported on Form W-2, Box 8
Answer:
The employer reports the allocated tips in Box 8 of the employee's Form W-2; the allocated tips are not included in Box 1 as taxable wages.
The employee must include the tip amount in Box 8, as wage income on Form 1040, Line 7 and also enter the amount on Form 4137 to determine the employee's share of the FICA tax liability.
The employee must include the tip amount in Box 8, as wage income on Form 1040, Line 7 and also enter the amount on Form 4137 to determine the employee's share of the FICA tax liability.
