How to resolve unreported tips Form 4137 error on H&R Block software?

I'm completely losing it trying to figure this out! I've been working on my taxes using H&R Block software and I keep getting this stupid error about unreported tips and Form 4137. No matter what I do, I cannot get rid of it and the software won't let me file because of this issue. I work as a server at a restaurant and I'm trying to properly report all my tips. In box 7 of my W-2, my employer reported some of my tips, but I made additional cash tips that weren't included. When I try to enter this information, I keep getting an error message about Form 4137 for unreported tips. I've tried entering different amounts, checking and unchecking various boxes, but nothing seems to work. Has anyone else encountered this with H&R Block? Is there something specific I need to do to correctly report additional tips? I'm worried about getting in trouble with the IRS if I don't report everything correctly, but I also just want to get my taxes filed already! Any help would be seriously appreciated.

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21 comments

Kayla Morgan

•8M

This is a common issue with the H&R Block software when reporting tips! Form 4137 is specifically used to report tips you received that weren't reported to your employer, which then calculates the Social Security and Medicare taxes owed on those unreported tips. It sounds like you're trying to report tips that weren't included on your W-2. In H&R Block, you need to navigate to the Income section, then select "Wages and Salaries." After entering your W-2 information, there should be a section specifically for unreported tips. Make sure you're entering the additional cash tips in this dedicated section rather than trying to modify the amounts already reported on your W-2. The software should automatically generate Form 4137 based on your entries. If you're still getting an error, it might be because there's a mismatch between what you've entered in different sections or you might have accidentally entered the same tips twice.

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Kayla Morgan

•8M

You only need to enter the unreported tips - the ones that weren't included on your W-2. The software will handle the calculation of additional taxes owed on just those unreported tips. Your W-2 tips are already properly taxed. Regarding your concern about not reporting throughout the year, the IRS does expect you to report tips to your employer monthly (using Form 4070) if you receive $20+ in tips in a month. However, Form 4137 exists precisely for this situation - to pay the proper taxes when filing your return. You might owe a small penalty for not reporting earlier, but filing correctly now with Form 4137 is the right step to take and will prevent bigger problems.

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Jasmine Hancock

•8M

I had the same issue last tax season and found that taxr.ai really helped me sort through this mess. I was stuck on the same Form 4137 errors in H&R Block and couldn't figure out which numbers went where. I uploaded my W-2 and a list of my cash tips to https://taxr.ai and it analyzed everything for me. It showed me exactly where I needed to enter my unreported tips in H&R Block and which boxes to check. The step-by-step guidance made it super clear and I was able to file without that annoying error popping up.

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Jasmine Hancock

•8M

Yes, it works with all major tax software! The analysis breaks down what goes where regardless of whether you're using H&R Block, TurboTax, or others. It gives you specific field names for each software. Regarding security, I was nervous too at first! They use bank-level encryption and don't store your documents after analysis. Their privacy policy was pretty straightforward - they don't sell your data or anything sketchy like that. I was actually surprised at how non-intrusive it was compared to the tax prep companies themselves.

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Cole Roush

•8M

Just wanted to update after trying taxr.ai for my tip reporting issue in TurboTax. It totally worked! I uploaded my documents last night and got a clear breakdown of exactly where to enter my unreported tips. The software was specifically showing me where to fix the Form 4137 errors, and it even explained which numbers were causing the issue. For anyone dealing with tip reporting problems, it saved me hours of frustration. I was able to submit my return this morning with no errors!

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Arnav Bengali

•8M

If you're still having issues with H&R Block or just need clarification directly from the IRS about Form 4137, I'd recommend using Claimyr. I was in the same boat last year with unreported tips and couldn't get a straight answer from anyone. After trying to call the IRS for days (always "high call volume" messages), I used https://claimyr.com and they got me connected to an actual IRS agent in about 15 minutes. You can see how it works in this video: https://youtu.be/_kiP6q8DX5c The IRS agent walked me through the exact requirements for Form 4137 and explained how to properly report tips that weren't on my W-2. They also told me what documentation I needed to keep in case of an audit. Totally worth it for the peace of mind.

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Arnav Bengali

•8M

It's actually pretty simple - they use technology that monitors the IRS phone lines and calls at the perfect time when wait times are lowest. When an agent answers, you get connected immediately. It's not a special phone number, just smart timing with their system. No, it's definitely not a scam. I was totally skeptical too! But it really does work - they monitor the best times to call and do the waiting for you. I was seriously surprised when I got connected to a real person after trying for days on my own. The IRS is understaffed but they do answer the phones - the trick is calling at exactly the right moment, which is what their system does.

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Rachel Tao

•8M

I need to publicly eat my words here. After my skeptical comment yesterday, I decided to try Claimyr as a last resort for my tip reporting questions. I honestly didn't think it would work, but I was connected to an IRS representative in about 20 minutes. The agent was able to walk me through exactly how to report my unreported tips on Form 4137 and fixed the issues I was having with H&R Block. They even explained which supporting documents I should keep for my records. Totally changed my perspective on dealing with the IRS - turns out they're actually helpful when you can actually speak to someone!

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Derek Olson

•8M

In H&R Block, go to the Federal section, then "Income" and look for "Wages and Income." After you've entered your W-2, there should be a question asking if you received tips that weren't reported to your employer. Select "Yes" and it will take you to the Form 4137 section. Make sure you're only entering the ADDITIONAL cash tips you received that aren't already included on your W-2. The most common mistake is entering the total of all tips instead of just the unreported portion.

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Saleem Vaziri

•8M

Thank you all SO MUCH for the helpful responses! I finally figured it out - I was indeed accidentally reporting the same tips twice in different sections. I deleted the duplicate entries, made sure I was only reporting the additional cash tips not included on my W-2 in the Form 4137 section, and the error went away! I was able to submit my return successfully. For anyone else having this issue, definitely check for duplicate entries and make sure you're only reporting the ADDITIONAL unreported tips, not your total tips for the year. Those W-2 tips are already handled!

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Callum Savage

•5M

Glad to hear you got it sorted out! This is actually one of the most common tax software errors I see posted about during filing season. The duplicate entry issue catches so many people - the software interfaces can be confusing about where exactly to input different types of tip income. For future reference, keep good records of your daily cash tips throughout the year. Even a simple notebook or phone app where you jot down your cash tips each shift can save you a lot of headaches come tax time. The IRS expects tip earners to report tips to their employer monthly if they exceed $20, but having your own records makes filing much smoother regardless. Also, don't stress too much about the Form 4137 - it's actually a pretty straightforward form once you understand it's just calculating the Social Security and Medicare taxes on your unreported tips. The software handles all the math for you once you enter the correct amounts in the right places.

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