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My W-2 has my allocated tips and Social Security tips listed as the same number, then when finishing says my total tips are those two numbers combined. Is this correct?

 
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Accepted Solutions
DawnC
Employee Tax Expert

My W-2 has my allocated tips and Social Security tips listed as the same number, then when finishing says my total tips are those two numbers combined. Is this correct?

Yes.  Your tip income would be reported in box 1,5, and 7 on your W2.   The amount in box 4 would be the Social Security taxes due on your Social Security wages and your Social Security tips.  The total of boxes 5 plus 7 would be your Social Security base for determining the amount of Social Security taxes withheld.  

 

The amount in box 4 for Social Security tax withheld would be 6.2% of the total for box 5 and box 7.

 

You can check this out on a calculator to see if the amount in box 4 is correct.  If it is correct, you can continue through the warning and complete your return.

 

Tip Taxes

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1 Reply
DawnC
Employee Tax Expert

My W-2 has my allocated tips and Social Security tips listed as the same number, then when finishing says my total tips are those two numbers combined. Is this correct?

Yes.  Your tip income would be reported in box 1,5, and 7 on your W2.   The amount in box 4 would be the Social Security taxes due on your Social Security wages and your Social Security tips.  The total of boxes 5 plus 7 would be your Social Security base for determining the amount of Social Security taxes withheld.  

 

The amount in box 4 for Social Security tax withheld would be 6.2% of the total for box 5 and box 7.

 

You can check this out on a calculator to see if the amount in box 4 is correct.  If it is correct, you can continue through the warning and complete your return.

 

Tip Taxes

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
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