Social Security and Medicare Tax                                                             OMB No. 1545-0074
Form 4137                                           on Unreported Tip Income
Department of the Treasury                                Attach to your tax return.                                                      2024
                                                                                                                                          Attachment   
Internal Revenue Service                    Go to www.irs.gov/Form4137 for the latest information.                                        Sequence No. 24
Name of person who received tips. If married, complete a separate Form 4137 for each spouse with unreported tips.                     Social security number 

1              (a)  Name of employer to whom you were required to         (b)  Employer                           (c)  Total cash and   (d)  Total cash and 
               but didn’t report all your tips (see instructions)       identification number  charge tips you received charge            tips you reported 
                                                                        (see instructions)     (including unreported tips)               to your employer
                                                                                                                  (see instructions)

   A 

   B 

   C 

   D 

   E 
2      Total cash and charge tips you received in 2024. Add the amounts from line 1, 
       column (c)        .  . . .  . .    . .  .    . . . .       . . . .  .    . .    . .     2 
3      Total cash and charge tips you     reported    to your employer(s) in 2024. Add the amounts from line 1, 
       column (d)        .  . . .  . .    . .  .    . . . .       . . . .  .    . .    . . .   .                  .    . . . .      .  3
4      Subtract  line  3  from  line  2.  Include  as  income  on  Form  1040,  1040-SR,  or  1040-NR,  line  1c.  (See 
       Allocated tips in the instructions.) .  .    . . . .       . . . .  .    . .    . . .   .                  .    . . . .      .  4
5      Cash and charge tips you received but didn’t report to your employer because the total was less than 
       $20 in a calendar month (see instructions)  .    . .       . . . .  .    . .    . . .   .                  .    . . . .      .  5
6      Unreported tips subject to Medicare tax. Subtract line 5 from line 4 .     .    . . .   .                  .    . . . .      .  6 
7      Maximum amount of wages (including tips) subject to social security tax  .        .     7                           168,600
8      Total social security wages and social security tips (total of your Form(s) W-2, 
       boxes 3 and 7) and railroad retirement (RRTA) compensation (subject to 6.2%
       rate) (see instructions) .  . .    . .  .    . . . .       . . . .  .    . .    . .     8
9      Subtract line 8 from line 7. If line 8 is more than line 7, enter -0-  . . .    . . .   .                  .    . . . .      .  9
10     Unreported tips subject to social security tax. Enter the    smaller of line 6 or line 9. If you received tips
       as a federal, state, or local government employee, see instructions  .     .    . . .   .                  .    . . . .      .  10
11     Multiply line 10 by 0.062 (social security tax rate)  .    . . . .  .    . .    . . .   .                  .    . . . .      .  11 
12     Multiply line 6 by 0.0145 (Medicare tax rate)    . .       . . . .  .    . .    . . .   .                  .    . . . .      .  12 
13     Add lines 11 and 12. Include as tax on Schedule 2 (Form 1040), line 5, or Form 1040-SS, Part I, line 6. 
       (See instructions there.) .   .    . .  .    . . . .       . . . .  .    . .    . . .   .                  .    . . . .      .  13 
General Instructions                                                    Purpose of form. Use Form 4137 only to figure the social 
                                                                        security and Medicare tax owed on tips you didn’t report to your 
Future Developments                                                     employer, including any allocated tips shown on your Form(s) 
For the latest information about developments related to Form           W-2 that you must report as income. You must also report the 
4137 and its instructions, such as legislation enacted after they       income on Form 1040, 1040-SR, or 1040-NR, line 1c. By filing 
were published, go to www.irs.gov/Form4137.                             this form, your social security and Medicare tips will be credited 
                                                                        to your social security record (used to figure your benefits). 
What’s New                                                              Don’t use Form 4137 as a substitute Form W-2.
For 2024, the maximum wages and tips subject to social                                 If you believe you’re an employee and you received 
security tax increases to $168,600. The social security tax rate                       Form 1099-MISC, Miscellaneous Information, or Form 
an employee must pay on tips remains at 6.2%.                             ▲!           1099-NEC, Nonemployee Compensation, instead of 
                                                                          CAUTION      Form W-2, Wage and Tax Statement, because your  
Reminder                                                                employer didn’t consider you an employee, don’t use this form 
A 0.9% Additional Medicare Tax applies to Medicare wages,               to report the social security and Medicare tax on that income. 
Railroad Retirement Tax Act (RRTA) compensation, and self-              Instead, use Form 8919, Uncollected Social Security and 
employment income over a threshold amount based on your                 Medicare Tax on Wages. 
filing status. Use Form 8959, Additional Medicare Tax, to figure        Who must file. You must file Form 4137 if you received cash 
this tax. See the Instructions for Form 8959 for more information       and charge tips of $20 or more in a calendar month and didn’t 
on the Additional Medicare Tax.                                         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.

For Paperwork Reduction Act Notice, see your tax return instructions.                      Cat. No. 12626C                                   Form 4137 (2024) 

Form 4137 (2024)                                                                                                                Page 2 

Allocated tips. You must report all your tips from 2024,           Specific Instructions 
including both cash tips and noncash tips, as income on Form 
1040, 1040-SR, or 1040-NR. Any tips you reported to your           Line 1. Complete a separate row for each employer. If you had 
employer in 2024 are included in the wages shown on your           more than five employers in 2024, attach a statement that 
Form W-2, box 1. Enter on Form 1040, 1040-SR, or 1040-NR,          contains all of the information (and in a similar format) as 
line 1c, only the tips you received in 2024 and didn’t report to   required on Form 4137, line 1, or complete and attach line 1 of 
your employer. This should include any allocated tips shown on     additional Form(s) 4137. Complete lines 2 through 13 on only 
your Form(s) W-2, box 8, unless you have adequate records to       one Form 4137. The line 2 and line 3 amounts on that Form 
show that your unreported tips are less than the amount in box     4137 should be the combined totals of all your Forms 4137 and 
8. Although allocated tips are shown on your Form W-2, box 8,      attached statements. Include your name, social security 
they aren’t included in Form W-2, box 1, and no tax is withheld    number, and calendar year (2024) on the top of any attachment.  
from these tips.                                                     Column (a). Enter your employer’s name exactly as shown on 
Tips you must report to your employer. If you receive $20 or       your Form W-2.
more in cash tips (defined next), you must report 100% of those      Column (b). For each employer’s name you entered in 
tips to your employer through a written report. Cash tips include  column (a), enter the employer identification number (EIN) or the 
tips paid by cash, check, debit card, and credit card. The         words “Applied For” exactly as shown on your Form W-2. 
written report should include tips your employer paid to you for     Columns (c) and (d). Include all cash and charge tips you 
tips customers paid electronically, tips you received directly     received. All of the following tips must be included.
from customers, tips you received from other employees, and        • Total tips you reported to your employer on time. Tips you 
tips you received under any other tip-sharing arrangement. If, in  reported, as required, by the 10th day of the month following 
any month, you worked for two or more employers and received       the month you received them are considered income in the 
tips while working for each, the $20 rule applies separately to    month you reported them. For example, tips you received in 
the tips you received while working for each employer and not      December 2023 that you reported to your employer after 
to the total you received. You must report your tips to your       December 31, 2023, but by January 10, 2024, are considered 
employer by the 10th day of the month following the month you      income in 2024 and should be included on your 2024 Form W-2 
received them. If the 10th day of the month falls on a Saturday,   and reported on your 2024 Form 4137, line 1. Report these tips 
Sunday, or legal holiday, give your employer the report by the     in column (d). 
next business day. For example, because August 10, 2025, is a 
Sunday, you must report your tips received in July 2025 by         •  Tips you received in December 2024 that you reported to 
August 11, 2025.                                                   your employer after December 31, 2024, but by January 10, 
                                                                   2025, are considered income in 2025. Don’t include these tips 
Employees subject to the Railroad Retirement Tax Act. Don’t        on line 1 for 2024. Instead, report these tips on line 1, column 
use Form 4137 to report tips received for work covered by the      (d), on your 2025 Form 4137.
Railroad Retirement Tax Act. To get railroad retirement credit, 
you must report these tips to your employer.                       • Tips you didn’t report to your employer on time. Report these 
                                                                   tips in column (d). For example, tips you received in December 
Payment of tax.Tips you reported to your employer are subject      2024 that you reported to your employer after January 10, 2025, 
to social security and Medicare tax (or railroad retirement tax),  are considered income in 2024 because you didn’t report them 
Additional Medicare Tax, and income tax withholding. Your          to your employer on time. 
employer collects these taxes from wages (excluding tips) or 
other funds of yours available to cover them. If your wages        • Tips you didn’t report at all (include any allocated tips (see 
weren’t enough to cover these taxes, you may have given your       Allocated tips, earlier) shown on your Form(s) W-2, box 8, unless 
employer the additional amounts needed. Your Form W-2 will         you can prove that your unreported tips are less than the 
include the tips you reported to your employer and the taxes       amount in box 8). Report these tips in column (c). These tips are 
withheld. If there wasn’t enough money to cover the social         considered income to you in the month you actually received 
security and Medicare tax (or railroad retirement tax), your Form  them. 
W-2, box 12 (codes A and B), will show the uncollected tax due.    • Tips you received that you weren’t required to report to your 
See the instructions for Schedule 2 (Form 1040), line 13, to see   employer because they totaled less than $20 during the month. 
how to report the tax due. If you worked in American Samoa,        Report these tips in column (c). 
Guam, or the U.S. Virgin Islands, the amount of uncollected tax    Line 5. Enter only the tips you weren’t required to report to your 
due is identified in box 12 on Form W-2AS, W-2GU, or W-2VI         employer because the total received was less than $20 in a 
with codes A and B. If you worked in Puerto Rico, Form 499R-2/     calendar month. These tips aren’t subject to social security and 
W-2PR shows the uncollected tax due in the boxes for “Seguro       Medicare tax. 
Social no Retenido en Propinas - Uncollected Social Security       Line 6. Enter this amount on Form 8959, line 2, if you’re 
Tax on Tips” and “Contrib. Medicare no Retenida en Propinas -      required to file that form.
Uncollected Medicare Tax on Tips.” Unlike the uncollected          Line 8. For railroad retirement (RRTA) compensation, don’t 
portion of the regular (1.45%) Medicare tax, the uncollected       include an amount greater than $168,600, which is the amount 
Additional Medicare Tax isn’t reported on Form W-2, box 12,        subject to the 6.2% rate for 2024.
with code B. 
                                                                   Line 10. If line 6 includes tips you received for work you did as a 
Penalty for not reporting tips. If you didn’t report tips to your  federal, state, or local government employee and your pay was 
employer as required, you may be charged a penalty equal to        subject only to the 1.45% Medicare tax, subtract the amount of 
50% of the social security, Medicare, and Additional Medicare      those tips from the line 6 amount only for the purpose of 
Taxes due on those tips. You can avoid this penalty if you can     comparing lines 6 and 9. Don’t reduce the actual entry on line 6. 
show (in a statement attached to your return) that your failure to Enter “1.45% tips” and the amount you subtracted on the 
report tips to your employer was due to reasonable cause and       dotted line next to line 10.              
not due to willful neglect. 
Additional information. See Pub. 531, Reporting Tip Income. 
See Rev. Rul. 2012-18 for guidance on taxes imposed on tips 
and the difference between tips and service charges. You can 
find Rev. Rul. 2012-18, 2012-26 I.R.B. 1032, at 
www.irs.gov/irb/2012-26_IRB#RR-2012-18.