FICA Tip Credit

The w-2 shows the box 3 with $20K of SS income and box 7 with $50k of SS Tips.

However, box 4 shows the full 6.4% SS tax on the total of $70k.

Is that right? I guess I don't understand this.

Do I show the credit somewhere else?

Shouldn't PC handle this for me?

C

The tip credit is an employer credit.

Do you mean the "No Tax On Tips"?

Schedule 1-A. There are income limits and MFS is not eligible.

Review the Form ???? that's producing the credit?  

Or, are you really asking about the 'no tax on tips'?

Jinx... Susan, you beat me while I was trying to find the Form number.

Form 8846 is for Employer Tax on Tips.

I entered his tips in: 

Employer Social Security Credit (8846) 

Tips subject to social security or Medicare tax. 

Is your client the employER  ?

Answer the question as to whether you are attempting to use the new "no tax on tips" provision of the recent tax law change.

You mention 'his' W-2 - is your client just an employee with a W-2 that has tips on it.

Box 7 on his W-2 lists $4k of Social Security Tips.

I believe he is trying to use the "no tax on tips" provision.

C

   And THAT has nothing to do with the EmployER  tips credit.  You are barking up the wrong tree.

Somewhere on the screen where the W-2 info is entered is a box to enter the tips subject to the exclusion from income.  I don't use PTO, so I can't give you specifics.