Booger Posted March 1, 2008 Report Share Posted March 1, 2008 Never did a hairdresser's return before. Box 1 (Wages) shows 30,000, Box 3 shows 23,000, and Box 5 shows 30,000. Box 7 shows 7,000, and nothing in Box 8. Reading instructions for Form 4137, it appears that this Form DOES NOT APPLY, unless there are tips reported in Box 8. My question is does Form 4137 need to be filed for tips reported in Box 7? Booger Quote Link to comment Share on other sites More sharing options...
BulldogTom Posted March 1, 2008 Report Share Posted March 1, 2008 Never did a hairdresser's return before. Box 1 (Wages) shows 30,000, Box 3 shows 23,000, and Box 5 shows 30,000. Box 7 shows 7,000, and nothing in Box 8. Reading instructions for Form 4137, it appears that this Form DOES NOT APPLY, unless there are tips reported in Box 8. My question is does Form 4137 need to be filed for tips reported in Box 7? Booger No. Form 4137 is for UNREPORTED tips. The tips on her W2 are reported to the employer. Now, Betty Sue should be telling you about the "other" tips that she gives to Jerome. He is real smart and knows that if Betty Sue does not have the tips at the end of the night, she doesn't have to claim them. Tom Lodi, CA Quote Link to comment Share on other sites More sharing options...
Booger Posted March 1, 2008 Author Report Share Posted March 1, 2008 But how does the SS tax get paid, if the Box 7 amount is not included in Box 3? Booger Quote Link to comment Share on other sites More sharing options...
BulldogTom Posted March 1, 2008 Report Share Posted March 1, 2008 But how does the SS tax get paid, if the Box 7 amount is not included in Box 3? Booger Sorry, I did not read your post closely enough. It looks like the establishment the client worked at has failed to with hold the SS and Med taxes on the tips the client reported to them. I would double check with the employer to make sure they did not withhold, or ask them to correct the W2. I worked for several years in the restaurant and adult beverage industries. That is where I got most of my first clients when I started, and I never saw a W2 with reported tips and no with holding. That is an employer responsibility. It really sounds like the maker of the W2 just screwed up. Sorry that I did not read the post properly the first time. I hope this helps. Tom Lodi, CA Quote Link to comment Share on other sites More sharing options...
Maura Posted March 1, 2008 Report Share Posted March 1, 2008 Box 3 and box 7 based on yours total 30,000. Box 4 should be 1860. If it is not then the w-2 is wrong. Quote Link to comment Share on other sites More sharing options...
taxdan Posted March 1, 2008 Report Share Posted March 1, 2008 Yes, I agree with Maura. SS tax in box 4 is calculated on the amounts in both the amounts in box 3 AND box 7. Quote Link to comment Share on other sites More sharing options...
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