It's not completely clear what might be taking place, but it's possible you had 'allocated tips' on your W-2. Check out Box 8, if this has an amount then you are paying medicare tax and social security tax for these tips which would be creating 'additional and other taxes' (Form 4137). This would trigger an upgrade to a higher version of TurboTax: See TurboTax versions and Tax Forms for each (scroll to Tax Forms section)
Allocated tips are amounts your employer assigned to you in addition to the tips you reported. Your employer is required to allocate tips only if:
- You worked in a large food or beverage establishment (restaurant, cocktail lounge, or similar business),
- You received any tips directly from customers, and
- The amount of tips you reported to your employer was less than your share of 8% (or a lower rate approved by the IRS, if your employer requested it) of food and drink sales.
Generally, you must report the full amount contained in box 8 of your Form W-2. However, you don't report the entire allocated tip amount on your income tax return if you have adequate records to show that you received less tips in the year than the allocated amount. You should keep a daily record of all tips you receive from customers and from other employees who tip out to you and the amounts you tip out to other employees. If you don't have records or if you have inadequate records, you must report the full amount in box 8 as income on your income tax return.
You can try the links provided earlier for IRS free file.
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