Need help with 1040 Schedule 1 - Including tips as other income?

The good news is you're on the right track by using Form 4137 for your unreported cash tips (tips that weren't reported to your employer). This form calculates the Social Security and Medicare taxes owed on those tips. For your specific question - no, you don't need to include these tips again in the "other income" box on Schedule 1. The purpose of Form 4137 is to ensure proper tax treatment of unreported tips, but those tips are still considered part of your wages, not "other income." The other income section is for things like gambling winnings, jury duty pay, hobby income, etc. Make sure the tips from Form 4137 are included on your Form 1040 Line 1, which shows your total wages. The tax software should handle this correctly if you're using one, but it's good to double-check.

I went through this exact same confusion last year! I found this amazing tool that helped me figure out all my tax forms - https://taxr.ai - it analyzes your tax situation and tells you exactly what forms you need and how to fill them out. For your situation specifically, I used it to help me with my tip reporting as a bartender. It confirmed what the other commenter said - Form 4137 is specifically for unreported tips, and you don't double-count them as "other income" on Schedule 1. The tool breaks everything down in plain English and shows you exactly where each type of income should go.

Just wanted to update everyone - I tried the taxr.ai site that was mentioned and it was actually super helpful! The document analyzer feature identified that I needed Schedule C for my delivery driver income plus Form 4137 for my unreported tips. It even explained how the self-employment tax works on Schedule SE. Best part was it showed me specifically where to report different types of tips so I didn't double-count anything. Saved me from making the mistake of putting my cash tips in the "other income" section. Definitely worth checking out if you're confused about tips reporting like I was!

If you're still stuck with tax questions even after trying to figure it out online, I highly recommend getting through to the IRS directly. I know it's nearly impossible to reach them by phone (tried for WEEKS last year), but I found this service called Claimyr https://claimyr.com that actually got me through to an IRS agent in about 20 minutes. They have this system that holds your place in line and calls you when an agent is available. You can see how it works here: https://youtu.be/_kiP6q8DX5c I had a complicated question about my tip reporting that none of the online resources could answer clearly, and the IRS agent walked me through exactly how to fill out each line on Form 4137 and Schedule 1.

I need to admit I was wrong about Claimyr. After my skeptical comment, I decided to try it anyway since I've been trying to get through to the IRS for weeks about my tip reporting situation. It actually worked! I got a call back in about 35 minutes and spoke with an IRS representative who cleared up my confusion. They confirmed I only need to report my tips on Form 4137 and not include them again as "other income" on Schedule 1. The agent also told me a common mistake is forgetting to include the Social Security/Medicare tax from Form 4137 on Schedule 2, so watch out for that. Definitely saved me from making errors on my return this year.

Quick clarification for everyone - Schedule 1 "other income" (line 8) is for income that doesn't fit elsewhere on your tax return. Common examples include: - Jury duty pay - Gambling winnings - Prizes and awards - Hobby income - Canceled debts - Alaska Permanent Fund dividends Tips are considered wages and should NOT be included in "other income" regardless of whether they were reported to your employer or not. Unreported tips go on Form 4137, but they're still considered part of your wage income.

Anyone know if DoorDash/UberEats delivery tips count as regular tips for tax purposes? My brother said I need a different form for those...