Get 1545-0059 Social Security And Medicare Tax On Unreported Tip Income

Filling out the 1545-0059 form is essential for calculating the social security and Medicare tax on tips that were not reported to your employer. This guide provides clear steps to assist you in completing the form accurately and efficiently online.

Follow the steps to successfully complete your form online.

1. Click ‘Get Form’ button to obtain the form and open it in the editor.
2. Enter the name of the individual who received the tips as shown on Form 1040. If the individual is married, ensure to complete a separate Form 4137 for each spouse who has unreported tips.
3. Provide the social security number related to the individual reporting the tips.
4. List the names of the employer(s) to whom the tips were required to be reported but were not.
5. On line 1, input the total cash and charge tips received during the specified year as detailed in the instructions.
6. On line 2, document the total cash and charge tips that were successfully reported to the employer during the specified year.
7. Subtract the amount on line 2 from line 1 and enter the result on line 3, which reflects the unreported income that must be included on Form 1040.
8. On line 4, indicate any cash and charge tips received that were not reported due to being less than $20 in a calendar month.
9. Subtract the total on line 4 from line 3 and enter the result on line 5.
10. Identify the maximum amount of wages subject to social security tax on line 6.
11. Enter the total social security wages and tips shown on Form W-2 or other documentation on line 7.
12. Subtract the amount on line 7 from line 6 on line 8. If line 7 exceeds line 6, place -0- on line 8.
13. On line 9, report the unreported tips subject to social security tax by entering the smaller amount of lines 5 and 8.
14. Calculate the tax due by multiplying the amount on line 9 by 0.062 and enter the result on line 10.
15. Identify the maximum amount of wages subject to Medicare tax on line 11.
16. Enter the total Medicare wages and tips on line 12, as derived from your Form W-2.
17. Subtract line 12 from line 11 on line 13; if line 12 is more, enter -0- here.
18. On line 14, report the unreported tips subject to Medicare tax by considering the smaller amount of lines 5 and 13.
19. Multiply the amount on line 14 by 0.0145 and enter the result on line 15.
20. Add the amounts on lines 10 and 15, and then report this total on line 16 and also on Form 1040, line 50.

Complete your forms online today to ensure proper reporting of your tip income.