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File 2008 Taxes

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File 2008 Taxes

File 2008 taxes Car Expenses Table of Contents Introduction Depreciation of CarSpecial Depreciation Allowance Depreciation Limit Amended Return Election Not To Claim Special Allowance If you purchased a car after September 10, 2001, for use in your business (or as an employee) and figure your deductible expenses using the actual car expense method, new law contains provisions that may affect your depreciation deduction for that car. File 2008 taxes Publication 463, Travel, Entertainment, Gift, and Car Expenses, contains information on figuring depreciation on your car. File 2008 taxes However, Publication 463 does not contain the new provisions because it was printed before the law was enacted. File 2008 taxes The new provisions are in the Supplement to Publication 463, which is reprinted below. File 2008 taxes Supplement to Publication 463 Travel, Entertainment, Gift, and Car Expenses   Introduction This supplemental publication is for taxpayers who purchased a car for business purposes after September 10, 2001, and figure their deductible expenses, including a deduction for depreciation, using the actual car expense method. File 2008 taxes After Publication 463 was printed, the Job Creation and Worker Assistance Act of 2002 was signed into law by the President. File 2008 taxes Certain provisions of this new law may reduce your taxes for 2001. File 2008 taxes The new law contains the following provisions. File 2008 taxes A new depreciation deduction, the special depreciation allowance. File 2008 taxes An increase in the limit on depreciation for any car for which you claim the new special depreciation allowance. File 2008 taxes If you have already filed your 2001 return, you may wish to file an amended return to claim any of these benefits. File 2008 taxes See Amended Return, later. File 2008 taxes Depreciation of Car If you used the actual car expense method to figure your deduction for a car you own and use in your business (or as an employee), you generally can claim a depreciation deduction. File 2008 taxes However, there is a limit on the depreciation deduction you can take for your car each year. File 2008 taxes See Depreciation Limit later. File 2008 taxes Special Depreciation Allowance The new law allows you to claim a special depreciation allowance. File 2008 taxes This special allowance is a deduction equal to 30% of the depreciable basis of qualified property. File 2008 taxes You figure the amount of the special depreciation allowance after any section 179 deduction you choose to claim, but before figuring your regular depreciation deduction under the Modified Accelerated Cost Recovery System (MACRS). File 2008 taxes See Depreciation Deduction under Actual Car Expenses in chapter 4 of Publication 463 for information about MACRS. File 2008 taxes You can claim the special depreciation allowance only for the year the qualified property is placed in service. File 2008 taxes Qualified property. File 2008 taxes   Qualified property includes a car (any four-wheeled vehicle, including a truck or van not more than 6,000 pounds, that is made primarily for use on public streets, roads, and highways) that meets all of the following requirements. File 2008 taxes You bought it new. File 2008 taxes You bought it after September 10, 2001. File 2008 taxes (But a car is not qualified property if a binding written contract for you to buy the car was in effect before September 11, 2001. File 2008 taxes ) You began using it for business after September 10, 2001, and used it more than 50% in a qualified business use. File 2008 taxes Example. File 2008 taxes Bob bought a new car on October 15, 2001, for $20,000 and placed it in service immediately, using it 75% for business. File 2008 taxes Bob's car is qualified property. File 2008 taxes Bob chooses not to take a section 179 deduction for the car. File 2008 taxes He does claim the new special depreciation allowance. File 2008 taxes Bob first must figure the car's depreciable basis, which is $15,000 ($20,000 × . File 2008 taxes 75). File 2008 taxes He then figures the special depreciation allowance of $4,500 ($15,000 × . File 2008 taxes 30). File 2008 taxes The remaining depreciable basis of $10,500 ($15,000 - $4,500) is depreciated using MACRS (200% declining balance method, half-year convention) and results in a deduction of $2,100 ($10,500 × . File 2008 taxes 20), for a total depreciation deduction for 2001 of $6,600 ($4,500 + $2,100). File 2008 taxes However, Bob's depreciation deduction is limited to $5,745 ($7,660 × . File 2008 taxes 75), as discussed next. File 2008 taxes Depreciation Limit The limit on your depreciation deduction for 2001 is increased to $7,660 for a car that is qualified property (defined above) and for which you claim the special depreciation allowance. File 2008 taxes The limit is increased to $23,080 if the car is an electric car. File 2008 taxes The section 179 deduction is treated as depreciation for purposes of this limit. File 2008 taxes If you use a car less than 100% in your business or work, the limit is $7,660 (or $23,080 for an electric car) multiplied by the percentage of business and investment use during the year. File 2008 taxes For cars that do not qualify for (or for which you choose not to claim) the special depreciation allowance, the limit remains $3,060 ($9,280 for electric cars). File 2008 taxes Amended Return If you filed your 2001 calendar year return before June 1, 2002, and did not claim the new special depreciation allowance for a qualified car, you can claim it by filing an amended return on Form 1040X, Amended U. File 2008 taxes S. File 2008 taxes Individual Income Tax Return, by April 15, 2003. File 2008 taxes At the top of the Form 1040X, print “Filed pursuant to Revenue Procedure 2002–33. File 2008 taxes ” If you are an employee, attach Form 2106, Employee Business Expenses (revised March 2002). File 2008 taxes If you are self-employed, attach Form 4562, Depreciation and Amortization (revised March 2002). File 2008 taxes Or, you can claim the special depreciation allowance by filing Form 3115, Application for Change in Accounting Method, with your 2002 return. File 2008 taxes For details, see Revenue Procedure 2002–33. File 2008 taxes (But, filing Form 1040X for 2001 enables you to claim the special allowance earlier than attaching Form 3115 to your 2002 return. File 2008 taxes ) You cannot claim the special depreciation allowance on an amended return (or by using Form 3115) if you made, or are treated as having made, the election not to claim it described later. File 2008 taxes Example. File 2008 taxes The facts are the same as in the previous example except that Bob filed his original 2001 income tax return on April 15, 2002, and claimed a $3,000 ($20,000 x . File 2008 taxes 75 x . File 2008 taxes 20) depreciation deduction for his new car using MACRS. File 2008 taxes Bob now wishes to claim the special depreciation allowance for his new car on an amended 2001 return. File 2008 taxes Bob, who is an employee, files Form 1040X, by April 15, 2003, with an updated Form 2106 (revised March 2002) attached, increasing his total depreciation deduction to $5,745, as figured in the earlier example. File 2008 taxes Bob's new filled-in Form 2106 is shown later. File 2008 taxes Election Not To Claim Special Allowance You can elect not to claim the special depreciation allowance for a car by making a statement attached to, or written on, your return indicating that you are electing not to claim the special depreciation allowance for 5-year property. File 2008 taxes As a general rule, you must make this election by the due date (including extensions) of your return. File 2008 taxes You can have an automatic extension of 6 months from the due date of your return (excluding extensions) to make the election with an amended return. File 2008 taxes To get this extension, you must have filed your original return by the due date (including extensions). File 2008 taxes At the top of the statement, print “Filed pursuant to section 301. File 2008 taxes 9100–2. File 2008 taxes ” If you elect not to claim the special depreciation allowance for a car, you cannot claim it for any other 5-year property placed in service during the same year. File 2008 taxes Unless you elect (or are treated as electing) not to claim the special depreciation allowance, you must reduce the car's adjusted basis by the amount of the allowance, even if the allowance was not claimed. File 2008 taxes Deemed election for return filed before June 1, 2002. File 2008 taxes   If you did not make the election not to claim the special depreciation allowance in the time and manner described above, you will still be treated as electing not to claim it if all of the following apply. File 2008 taxes You filed your 2001 return before June 1, 2002. File 2008 taxes You claimed depreciation on your return but did not claim the special depreciation allowance. File 2008 taxes You did not file an amended 2001 return by April 15, 2003, or a Form 3115 with your 2002 return, to claim the special depreciation allowance. File 2008 taxes Form 2106, Page 1, for Bob Smith Form 2106, Page 2, for Bob Smith Prev  Up  Next   Home   More Online Publications
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Understanding Your CP108 Notice

You are receiving this notice because you made a payment of $XXXXX on XXXXX, and we can’t determine the correct form or tax year to apply it to.


What you need to do

  • If the payment was applied correctly, then there is nothing you need to do.  There is no need to contact the IRS in these situations.
  • If the payment was not applied correctly, contact the IRS and advise them where the payment should be applied.  Contact us at the toll-free number on the top right corner of your notice or write us at the address on the notice.
  • Correct the copy of your tax return that you kept for your records.

You may want to


Answers to Common Questions

Q. What do I say when I call the IRS?

A. Mention that you received a CP 108 notice and you need to review your account with a customer service representative. Be sure to have a copy of your notice and your tax return before you call.

Q. What should I do if I disagree with the changes you made?

A. If you disagree, contact us at the toll-free number listed on the top right corner of your notice.

Q. What if I need to make another correction to my account?

A. You'll need to file an amended tax return.

Q. What if I have tried to get answers and after contacting IRS several times have not been successful?

A. Call Taxpayer Advocate at 1-877-777-4778 or for TTY/TDD 1-800-829-4059.

 


Tips for next year

If you paid electronically, ensure that you enter a valid tax period end date.  Review Appendix A of the EFTPS Payment Instruction Booklet to determine the proper tax form code.

In addition, review the instructions for determining the correct tax period end date (e.g., for quarterly returns, Forms 720, Forms 941, etc., March 31, June 30, September 30, December 31). Enter as the MM in the YYMM format as:

Quarter Format
1st quarter March 31 31-03
2nd quarter June 30 30-06
3rd quarter September 30-09
4th quarter December 31-12

 

 

 

Page Last Reviewed or Updated: 10-Feb-2014

Printable samples of this notice (PDF)

 

 

How to get help

  • Call the 1-800 number listed on the top right corner of your notice.
  • Authorize someone (e.g., accountant) to contact the IRS on your behalf using Form 2848.
  • See if you qualify for help from a Low Income Taxpayer Clinic.
     

The File 2008 Taxes

File 2008 taxes 6. File 2008 taxes   Tip Income Table of Contents Introduction Useful Items - You may want to see: Keeping a Daily Tip RecordElectronic tip record. File 2008 taxes Reporting Tips to Your EmployerElectronic tip statement. File 2008 taxes Final report. File 2008 taxes Reporting Tips on Your Tax Return Allocated Tips Introduction This chapter is for employees who receive tips. File 2008 taxes All tips you receive are income and are subject to federal income tax. File 2008 taxes You must include in gross income all tips you receive directly, charged tips paid to you by your employer, and your share of any tips you receive under a tip-splitting or tip-pooling arrangement. File 2008 taxes The value of noncash tips, such as tickets, passes, or other items of value, is also income and subject to tax. File 2008 taxes Reporting your tip income correctly is not difficult. File 2008 taxes You must do three things. File 2008 taxes Keep a daily tip record. File 2008 taxes Report tips to your employer. File 2008 taxes Report all your tips on your income tax return. File 2008 taxes  This chapter will explain these three things and show you what to do on your tax return if you have not done the first two. File 2008 taxes This chapter will also show you how to treat allocated tips. File 2008 taxes For information on special tip programs and agreements, see Publication 531. File 2008 taxes Useful Items - You may want to see: Publication 531 Reporting Tip Income 1244 Employee's Daily Record of Tips and Report to Employer Form (and Instructions) 4137 Social Security and Medicare Tax on Unreported Tip Income 4070 Employee's Report of Tips to Employer Keeping a Daily Tip Record Why keep a daily tip record. File 2008 taxes   You must keep a daily tip record so you can: Report your tips accurately to your employer, Report your tips accurately on your tax return, and Prove your tip income if your return is ever questioned. File 2008 taxes How to keep a daily tip record. File 2008 taxes   There are two ways to keep a daily tip record. File 2008 taxes You can either: Write information about your tips in a tip diary, or Keep copies of documents that show your tips, such as restaurant bills and credit or debit card charge slips. File 2008 taxes You should keep your daily tip record with your tax or other personal records. File 2008 taxes You must keep your records for as long as they are important for administration of the federal tax law. File 2008 taxes For information on how long to keep records, see How long to keep records in chapter 1. File 2008 taxes    If you keep a tip diary, you can use Form 4070A, Employee's Daily Record of Tips. File 2008 taxes To get Form 4070A, ask the Internal Revenue Service (IRS) or your employer for Publication 1244. File 2008 taxes Also, Publication 1244 is available online at www. File 2008 taxes irs. File 2008 taxes gov/pub/irs-pdf/p1244. File 2008 taxes pdf. File 2008 taxes Publication 1244 includes a 1-year supply of Form 4070A. File 2008 taxes Each day, write in the information asked for on the form. File 2008 taxes   In addition to the information asked for on Form 4070A, you also need to keep a record of the date and value of any noncash tips you get, such as tickets, passes, or other items of value. File 2008 taxes Although you do not report these tips to your employer, you must report them on your tax return. File 2008 taxes   If you do not use Form 4070A, start your records by writing your name, your employer's name, and the name of the business (if it is different from your employer's name). File 2008 taxes Then, each workday, write the date and the following information. File 2008 taxes Cash tips you get directly from customers or from other employees. File 2008 taxes Tips from credit and debit card charge customers that your employer pays you. File 2008 taxes The value of any noncash tips you get, such as tickets, passes, or other items of value. File 2008 taxes The amount of tips you paid out to other employees through tip pools or tip splitting, or other arrangements, and the names of the employees to whom you paid the tips. File 2008 taxes Electronic tip record. File 2008 taxes   You can use an electronic system provided by your employer to record your daily tips. File 2008 taxes If you do, you must receive and keep a paper copy of this record. File 2008 taxes Service charges. File 2008 taxes    Do not write in your tip diary the amount of any service charge that your employer adds to a customer's bill and then pays to you and treats as wages. File 2008 taxes This is part of your wages, not a tip. File 2008 taxes See examples below. File 2008 taxes Example 1. File 2008 taxes Good Food Restaurant adds an 18% charge to the bill for parties of 6 or more customers. File 2008 taxes Jane’s bill for food and beverages for her party of 8 includes an amount on the tip line equal to 18% of the charges for food and beverages, and the total includes this amount. File 2008 taxes Because Jane did not have an unrestricted right to determine the amount on the “tip line,” the 18% charge is considered a service charge. File 2008 taxes Do not include the 18% charge in your tip diary. File 2008 taxes Service charges that are paid to you are considered wages, not tips. File 2008 taxes Example 2. File 2008 taxes Good Food Restaurant also includes sample calculations of tip amounts at the bottom of its bills for food and beverages provided to customers. File 2008 taxes David’s bill includes a blank “tip line,” with sample tip calculations of 15%, 18%, and 20% of his charges for food and beverages at the bottom of the bill beneath the signature line. File 2008 taxes Because David is free to enter any amount on the “tip line” or leave it blank, any amount he includes is considered a tip. File 2008 taxes Be sure to include this amount in your tip diary. File 2008 taxes Reporting Tips to Your Employer Why report tips to your employer. File 2008 taxes   You must report tips to your employer so that: Your employer can withhold federal income tax and social security, Medicare, Additional Medicare, or railroad retirement taxes, Your employer can report the correct amount of your earnings to the Social Security Administration or Railroad Retirement Board (which affects your benefits when you retire or if you become disabled, or your family's benefits if you die), and You can avoid the penalty for not reporting tips to your employer (explained later). File 2008 taxes What tips to report. File 2008 taxes   Report to your employer only cash, check, and debit and credit card tips you receive. File 2008 taxes   If your total tips for any 1 month from any one job are less than $20, do not report the tips for that month to that employer. File 2008 taxes   If you participate in a tip-splitting or tip-pooling arrangement, report only the tips you receive and retain. File 2008 taxes Do not report to your employer any portion of the tips you receive that you pass on to other employees. File 2008 taxes However, you must report tips you receive from other employees. File 2008 taxes    Do not report the value of any noncash tips, such as tickets or passes, to your employer. File 2008 taxes You do not pay social security, Medicare, Additional Medicare or railroad retirement taxes on these tips. File 2008 taxes How to report. File 2008 taxes    If your employer does not give you any other way to report tips, you can use Form 4070. File 2008 taxes Fill in the information asked for on the form, sign and date the form, and give it to your employer. File 2008 taxes To get a 1-year supply of the form, ask the IRS or your employer for Publication 1244. File 2008 taxes   If you do not use Form 4070, give your employer a statement with the following information. File 2008 taxes Your name, address, and social security number. File 2008 taxes Your employer's name, address, and business name (if it is different from your employer's name). File 2008 taxes The month (or the dates of any shorter period) in which you received tips. File 2008 taxes The total tips required to be reported for that period. File 2008 taxes You must sign and date the statement. File 2008 taxes Be sure to keep a copy with your tax or other personal records. File 2008 taxes   Your employer may require you to report your tips more than once a month. File 2008 taxes However, the statement cannot cover a period of more than 1 calendar month. File 2008 taxes Electronic tip statement. File 2008 taxes   Your employer can have you furnish your tip statements electronically. File 2008 taxes When to report. File 2008 taxes   Give your report for each month to your employer by the 10th of the next month. File 2008 taxes If the 10th falls on a Saturday, Sunday, or legal holiday, give your employer the report by the next day that is not a Saturday, Sunday, or legal holiday. File 2008 taxes Example. File 2008 taxes You must report your tips received in September 2014 by October 10, 2014. File 2008 taxes Final report. File 2008 taxes   If your employment ends during the month, you can report your tips when your employment ends. File 2008 taxes Penalty for not reporting tips. File 2008 taxes   If you do not report tips to your employer as required, you may be subject to a penalty equal to 50% of the social security, Medicare, and Additional Medicare taxes or railroad retirement tax you owe on the unreported tips. File 2008 taxes (For information about these taxes, see Reporting social security, Medicare, Additional Medicare, or railroad retirement taxes on tips not reported to your employer under Reporting Tips on Your Tax Return, later. File 2008 taxes ) The penalty amount is in addition to the taxes you owe. File 2008 taxes   You can avoid this penalty if you can show reasonable cause for not reporting the tips to your employer. File 2008 taxes To do so, attach a statement to your return explaining why you did not report them. File 2008 taxes Giving your employer money for taxes. File 2008 taxes   Your regular pay may not be enough for your employer to withhold all the taxes you owe on your regular pay plus your reported tips. File 2008 taxes If this happens, you can give your employer money until the close of the calendar year to pay the rest of the taxes. File 2008 taxes   If you do not give your employer enough money, your employer will apply your regular pay and any money you give in the following order. File 2008 taxes All taxes on your regular pay. File 2008 taxes Social security, Medicare, and Additional Medicare taxes or railroad retirement taxes on your reported tips. File 2008 taxes Federal, state, and local income taxes on your reported tips. File 2008 taxes    Any taxes that remain unpaid can be collected by your employer from your next paycheck. File 2008 taxes If withholding taxes remain uncollected at the end of the year, you may be subject to a penalty for underpayment of estimated taxes. File 2008 taxes See Publication 505, Tax Withholding and Estimated Tax, for more information. File 2008 taxes    Uncollected taxes. File 2008 taxes You must report on your tax return any social security and Medicare taxes or railroad retirement tax that remained uncollected at the end of 2013. File 2008 taxes These uncollected taxes will be shown on your 2013 Form W-2. File 2008 taxes See Reporting uncollected social security, Medicare, or railroad retirement taxes on tips reported to your employer under Reporting Tips on Your Tax Return, later. File 2008 taxes Reporting Tips on Your Tax Return How to report tips. File 2008 taxes    Report your tips with your wages on Form 1040, line 7; Form 1040A, line 7; or Form 1040EZ, line 1. File 2008 taxes What tips to report. File 2008 taxes   You must report all tips you received in 2013 on your tax return, including both cash tips and noncash tips. File 2008 taxes Any tips you reported to your employer for 2013 are included in the wages shown in box 1 of your Form W-2. File 2008 taxes Add to the amount in box 1 only the tips you did not report to your employer. File 2008 taxes    If you received $20 or more in cash and charge tips in a month and did not report all of those tips to your employer, see Reporting social security, Medicare, Additional Medicare, or railroad retirement taxes on tips not reported to your employer, later. File 2008 taxes    If you did not keep a daily tip record as required and an amount is shown in box 8 of your Form W-2, see Allocated Tips, later. File 2008 taxes   If you kept a daily tip record and reported tips to your employer as required under the rules explained earlier, add the following tips to the amount in box 1 of your Form W-2. File 2008 taxes Cash and charge tips you received that totaled less than $20 for any month. File 2008 taxes The value of noncash tips, such as tickets, passes, or other items of value. File 2008 taxes Example. File 2008 taxes Ben Smith began working at the Blue Ocean Restaurant (his only employer in 2013) on June 30 and received $10,000 in wages during the year. File 2008 taxes Ben kept a daily tip record showing that his tips for June were $18 and his tips for the rest of the year totaled $7,000. File 2008 taxes He was not required to report his June tips to his employer, but he reported all of the rest of his tips to his employer as required. File 2008 taxes Ben's Form W-2 from Blue Ocean Restaurant shows $17,000 ($10,000 wages plus $7,000 reported tips) in box 1. File 2008 taxes He adds the $18 unreported tips to that amount and reports $17,018 as wages on his tax return. File 2008 taxes Reporting social security, Medicare, Additional Medicare, or railroad retirement taxes on tips not reported to your employer. File 2008 taxes    If you received $20 or more in cash and charge tips in a month from any one job and did not report all of those tips to your employer, you must report the social security, Medicare, and Additional Medicare taxes on the unreported tips as additional tax on your return. File 2008 taxes To report these taxes, you must file a return even if you would not otherwise have to file. File 2008 taxes You must use Form 1040. File 2008 taxes (You cannot file Form 1040EZ or Form 1040A. File 2008 taxes )    Use Form 4137 to figure social security and Medicare taxes. File 2008 taxes Enter the tax on your return as instructed, and attach the completed Form 4137 to your return. File 2008 taxes Use Form 8959 to figure Additional Medicare Tax. File 2008 taxes    If you are subject to the Railroad Retirement Tax Act, you cannot use Form 4137 to pay railroad retirement tax on unreported tips. File 2008 taxes To get railroad retirement credit, you must report tips to your employer. File 2008 taxes Reporting uncollected social security, Medicare, or railroad retirement taxes on tips reported to your employer. File 2008 taxes   You may have uncollected taxes if your regular pay was not enough for your employer to withhold all the taxes you owe and you did not give your employer enough money to pay the rest of the taxes. File 2008 taxes For more information, see Giving your employer money for taxes , under Reporting Tips to Your Employer, earlier. File 2008 taxes   If your employer could not collect all the social security and Medicare taxes or railroad retirement tax you owe on tips reported for 2013, the uncollected taxes will be shown in box 12 of your Form W-2 (codes A and B). File 2008 taxes You must report these amounts as additional tax on your return. File 2008 taxes Unlike the uncollected portion of the regular (1. File 2008 taxes 45%) Medicare tax, the uncollected Additional Medicare Tax is not reported in box 12 of Form W-2 with code B. File 2008 taxes    To report these uncollected taxes, you must file a return even if you would not otherwise have to file. File 2008 taxes You must report these taxes on Form 1040, line 60. File 2008 taxes See the instructions for Form 1040, line 60. File 2008 taxes (You cannot file Form 1040EZ or Form 1040A. File 2008 taxes ) Allocated Tips If your employer allocated tips to you, they are shown separately in box 8 of your Form W-2. File 2008 taxes They are not included in box 1 with your wages and reported tips. File 2008 taxes If box 8 is blank, this discussion does not apply to you. File 2008 taxes What are allocated tips. File 2008 taxes   These are tips that your employer assigned to you in addition to the tips you reported to your employer for the year. File 2008 taxes Your employer will have done this only if: You worked in an establishment (restaurant, cocktail lounge, or similar business) that must allocate tips to employees, and The tips you reported to your employer were less than your share of 8% of food and drink sales. File 2008 taxes No income, social security, Medicare, Additional Medicare or railroad retirement taxes are withheld on allocated tips. File 2008 taxes How were your allocated tips figured. File 2008 taxes   The tips allocated to you are your share of an amount figured by subtracting the reported tips of all employees from 8% (or an approved lower rate) of food and drink sales (other than carryout sales and sales with a service charge of 10% or more). File 2008 taxes Your share of that amount was figured using either a method provided by an employer-employee agreement or a method provided by IRS regulations based on employees' sales or hours worked. File 2008 taxes For information about the exact allocation method used, ask your employer. File 2008 taxes Must you report your allocated tips on your tax return. File 2008 taxes   You must report all tips you received in 2013 on your tax return, including both cash tips and noncash tips. File 2008 taxes Any tips you reported to your employer for 2013 are included in the wages shown in box 1 of your Form W-2. File 2008 taxes Add to the amount in box 1 only the tips you did not report to your employer. File 2008 taxes This should include any allocated tips shown in box 8 on your Form(s) W-2, unless you have adequate records to show that you received less tips in the year than the allocated figures. File 2008 taxes   See What tips to report under Reporting Tips on Your Tax Return, and Keeping a Daily Tip Record , earlier. File 2008 taxes How to report allocated tips. File 2008 taxes   Report the amount in box 1 and the allocated tips in box 8 of your Form(s) W-2 as wages on Form 1040, line 7; Form 1040NR, line 8; or Form 1040NR-EZ, line 3. File 2008 taxes (You cannot file Form 1040A or Form 1040EZ when you have allocated tips. File 2008 taxes )    Because social security, Medicare, and Additional Medicare taxes were not withheld from the allocated tips, you must report those taxes as additional tax on your return. File 2008 taxes Complete Form 4137, and include the allocated tips on line 1 of the form. File 2008 taxes See Reporting social security, Medicare, Additional Medicare, or railroad retirement taxes on tips not reported to your employer under Reporting Tips on Your Tax Return, earlier. File 2008 taxes Prev  Up  Next   Home   More Online Publications