Get 2018 Form 8846. Credit For Employer Social Security And Medicare Taxes Paid On Certain Employee Tips

Filling out the 2018 Form 8846 can be straightforward with a clear understanding of its components. This guide is designed to support users in completing the form accurately and efficiently, ensuring they can claim the appropriate credits for employer social security and Medicare taxes paid on employee tips.

Follow the steps to complete the form correctly.

1. Click the ‘Get Form’ button to obtain the form and open it in your chosen document editor.
2. Enter your identifying number and the name(s) shown on your return at the top of the form.
3. On line 1, record the total tips received by employees for which you paid or incurred employer social security and Medicare taxes during the tax year. Include any tips received from customers for services typically involving tipping.
4. On line 2, if you pay each tipped employee wages (excluding tips) equal to or more than $5.15 per hour, enter zero. Otherwise, calculate the non-creditable tips based on the difference between the federally mandated minimum wage and the actual wages paid, and enter this total on line 2.
5. On line 3, subtract the amount on line 2 from line 1 to determine the creditable tips.
6. On line 4, multiply the amount on line 3 by 7.65%. If applicable, check the box indicating if any tipped employee’s wages and tips exceeded $128,400, and follow the additional computation instructions provided.
7. On line 5, report the credit for employer social security and Medicare taxes paid on tips from partnerships and S corporations as applicable.
8. On line 6, sum the amounts from lines 4 and 5. If you are a partnership or S corporation, this amount should be reported on Schedule K. All other taxpayers should report this on Form 3800, Part III, line 4f.
9. Once all fields are completed accurately, save your changes, and you can proceed to download, print, or share the form as needed.

Complete your 2018 Form 8846 online today to ensure you receive the credits you may be eligible for.