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curlincook
Returning Member

Missing Tax Credit for SS-Medi Tips

Turbotax would cost me a $5,452 Tax Credit for 2020 taxes because it does not support Form 8846 to claim a Credit via Form 3800 for overpaying the 7.65% SS+Medicare tax on Tips that exceed the tip amount required to  have waitresses achieve min-wage for non-tipped staff.  Paychex processes payroll for many restaurants owners but it collects and pays SS+Medi tax on ALL tips.  I could find no Form 3800 workaround for the missing Form 8846 so now must pay a CPA to do my taxes.   I wasted my money on buying Turbotax.

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2 Replies

Missing Tax Credit for SS-Medi Tips

You seem very knowledgeable about the issue. Why not do your return yourself on paper. Then simply mail it in?

curlincook
Returning Member

Missing Tax Credit for SS-Medi Tips

The purpose of my post is to warn all business owners with tipped employees of this serious Turbotax omission. To avoid high cost of CPA tax filing, I will explore other tax filing software like from H&R Block.

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