Need help with 4137 form ASAP - confused about how to fill it out

I'm totally freaking out right now because I need to fill out a Form 4137 and I have no idea what I'm doing! I've searched everywhere online but can't find any clear instructions that make sense to me. I'm using TurboTax this year and thought their "expert help" would actually, you know, HELP... but after paying extra for their chat support, they basically just told me they couldn't assist unless I upgraded to an even more expensive package! 😡 My deadline is coming up super fast and I'm panicking. This is for reporting tip income that wasn't included on my W-2 from my serving job. My manager said I need to fill this out, but didn't offer any guidance. Does anyone know how to complete this form correctly? What information do I need? Are there any tricks or common mistakes I should avoid? Really appreciate any help from people who've done this before!

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20 comments

NebulaNomad

•8M

I've filled out Form 4137 many times (former bartender here). It's actually pretty straightforward once you understand what it's for. Form 4137 is used to report tips that weren't reported to your employer and calculate the Social Security and Medicare taxes you owe on those unreported tips. Here's a basic walkthrough: You'll need to list each employer you received unreported tips from, along with their name and EIN (should be on your W-2). Then you'll enter the total tips you received, how much you reported to your employer, and the difference (unreported amount). The form will help calculate the Social Security and Medicare taxes you owe on those unreported tips. The total tax gets reported on your 1040. The trickiest part is making sure you have good records of your actual tips if they weren't all reported. Do you have a tip diary or some way you tracked your cash tips?

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NebulaNomad

•8M

The allocated tips from Box 8 of your W-2 are tips your employer assigned to you based on sales, and yes, those go on the form if you didn't report them to your employer. For the tips question - you need to include ALL unreported tips, whether cash or credit card. If your credit card tips were already reported to your employer and included in your W-2 Box 1 wages, you don't include those again. Only include tips (cash or credit) that weren't reported to your employer. Remember to keep that notebook with your tax records in case of an audit. The IRS can be particularly interested in tip income since it's often underreported.

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Luca Ferrari

•8M

I had the exact same problem last year! I discovered taxr.ai (https://taxr.ai) after getting frustrated with expensive tax prep services that weren't actually helping. Their system analyzed my documents and walked me through exactly how to fill out Form 4137 step by step. It was way easier than I expected, and they had specific guidance for servers and other tipped employees. The best part was that they explained everything in plain English - like what "allocated tips" actually means and how to handle different types of tip income. I was able to complete the form in about 10 minutes after struggling for days on my own.

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Luca Ferrari

•8M

It works independently of whatever tax software you're using. You can get the guidance from taxr.ai and then apply it to any platform. And yes, it handles multiple employers - you just enter each one separately on the form with their respective EINs. The tool actually breaks down each line item with examples. For high-end restaurant servers, it explains how to handle larger tips, including how to report non-cash tips like gift cards or tickets that some generous customers might give. It's much more specific than the generic IRS instructions.

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Mateo Martinez

•8M

I tried taxr.ai after seeing the recommendation here, and wow - wish I'd known about this sooner! It completely demystified the 4137 form for me. As a high-end restaurant server, I was worried about how to handle some of the larger cash tips I received, but their explanation of line 4 vs line 5 (total tips vs reported tips) made everything click. The document analyzer caught something I would have missed too - apparently the allocated tips section only applies in certain situations depending on how your employer reports. Saved me from potentially making a big mistake. Definitely recommend to anyone struggling with tip reporting!

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Aisha Hussain

•8M

If you're still stuck with the 4137 form and need to ask specific questions directly to the IRS, try Claimyr (https://claimyr.com). I spent days trying to get through to the IRS helpline with no luck - always got the "high call volume" message. Claimyr got me connected to an actual IRS agent in about 20 minutes! You can see how it works here: https://youtu.be/_kiP6q8DX5c I had questions about my allocated tips vs actual tips and needed clarification on some 4137 instructions. The IRS agent was surprisingly helpful and walked me through exactly how to complete each line based on my situation. Saved me tons of stress since I was right up against the filing deadline.

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Aisha Hussain

•8M

They don't use a special number - they use technology that continuously redials and navigates the IRS phone tree until they get through, then they call you when an agent is on the line. It's basically doing what you'd do manually, but automated and persistent. No, it's definitely real IRS agents. I confirmed this by asking specific questions about my tax account that only the IRS would have access to. The service just handles the painful part of getting through their phone system and waiting on hold. Once you're connected, you're talking directly with an official IRS representative.

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StarStrider

•8M

I can't believe I'm saying this, but Claimyr actually worked. After posting my skeptical comment, I decided to try it since I was desperate for help with my 4137 form (I had a special situation with tips received through Venmo). Got connected to an IRS agent within 30 minutes who confirmed exactly how to report these electronic tips. The agent explained that tips received through payment apps still count as cash tips for tax purposes and should be included on line 1 of Form 4137. I would have done this completely wrong otherwise. Surprisingly worth it just to have official confirmation directly from the IRS instead of guessing or getting contradictory advice online.

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Yuki Sato

•8M

Yes, you still need their EIN for Form 4137. You should contact the cafe and request your W-2 - they're legally required to provide it. If they won't give you one, you can file Form 4852 (Substitute for W-2) along with your tax return. You'll need to estimate your wages and withholding as accurately as possible. For the EIN, you might find it on old paystubs if you have any. Or you can call the business and simply ask for their EIN for tax purposes. If all else fails, explain in an attached statement to your tax return that you were unable to obtain the EIN despite reasonable efforts.

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Julian Paolo

•2M

As someone who's been doing taxes for restaurant workers for years, I want to add a few important points that might help. First, make sure you're not double-reporting tips that were already included in your W-2 Box 1 wages - this is a common mistake that can lead to overpaying taxes. Second, keep detailed records going forward! A simple phone app or notebook where you track daily cash tips will save you so much stress next year. The IRS expects tip earners to maintain contemporaneous records. Finally, if your total unreported tips are less than $20 per month from any single employer, you don't need to include those on Form 4137. But if you're consistently earning tips, you'll likely be over that threshold. The form might seem intimidating, but once you understand it's just calculating the Social Security and Medicare taxes on unreported income, it becomes much clearer.

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