Form 8846 - Credit for Employer Social Security and Medicare Taxes Paid on Certain Employee Tips - Attachment Sequence No. 98

Sep 19, 2026

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Form 8846 (2000) details the calculation and limits of the employer credit for Social Security and Medicare taxes paid on certain employee tips. It guides which tip types qualify, how to compute the current year credit by multiplying creditable tips by 7.65%, and how to add credits from pass-through entities. Part II provides a tax liability limit framework using amounts drawn from other tax forms.

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Part I Current Year Credit

Part II Tax Liability Limit

8846 Department of the Treasury Internal Revenue Service Credit for Employer Social Security and Medicare Taxes OMB No. 1545-1414 Paid on Certain Employee Tips | Form | 􀀁 Attach to your return. | | 2000
Attachment
Sequence No. 98 | | --- | --- | --- | --- | | Name(s) shown on return | | Identifying number | | Note: Claim this credit only for social security and Medicare taxes paid by a food or beverage establishment where tipping is customary for providing food or beverages. See the instructions for line 1. Part I Current Year Credit | 1 Tips received by employees for services on which you paid or incurred employer social security and Medicare taxes during the tax year (see instructions)
2 Tips not subject to the credit provisions (see instructions)
3 Creditable tips. Subtract line 2 from line 1
4 Current year credit (see instructions). Multiply line 3 by 7. 65% (.0765). If you have any tipped employee(s) whose wages (including tips) exceeded $76,200, check here 􀀁 | | | 1 | | | | --- | --- | --- | --- | --- | --- | | | | | 2 | | | | | | | 3 | | | | | | | 4 | | | | | | |
5 | | | | 5 Form 8846 credits from pass-through entities | | If you are a— Then enter Form 8846 credit(s) from—
a Shareholder ScheduSchedue Ke K--11 ((Form 1120Form 1065S))linlineess112,d1, 122d,eo, or 13r 13 􀀂
b Partner | | | | | | | |
6 | | | | 6 Total current year credit. Add lines 4 and 5 | | | | | | | Part II Tax Liability Limit (See Who Must File Form 3800 to find out if you complete Part II or file Form 3800.) | | | | | | | 7
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17 | Regular tax before credits:
Individuals. Enter the amount from Form 1040, line 40 Corporations. Enter the amount from Form 1120, Schedule J, line 3; Form 1120-A, Part I, line 1; or the applicable line of your return Estates and trusts. Enter the sum of the amounts from Form 1041, Schedule G, lines 1a and 1b, or the amount from the applicable line of your return
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Alternative minimum tax:
CEostrpatoraesonndst.rEunstrtEe amoter theunaom Funt frormom46For,1l0i ,15Schedule I, line 39 􀀂
Individuals. Enter the amount from Form 6251, line 28
Add lines 7 and 8
Foreign tax credit Credit for child and dependent care expenses (Form 2441, line 9) Credit for the elderly or the disabled (Schedule R (Form 1040), line 20) Education credits (Form 8863, line 18) Child tax credit (Form 1040, line 47) Mortgage interest credit (Form 8396, line 11) Adoption credit (Form 8839, line 14) District of Columbia first-time homebuyer credit (Form 8859, line 11) Possessions tax credit (Form 5735, line 17 or 27) Credit for fuel from a nonconventional source Qualified electric vehicle credit (Form 8834, line 19)
10a 10b 10c 10d 10e 10f 10g 10h 10i 10j 10k
Add lines 10a through 10k Net income tax. Subtract line 10l from line 9
Tentative minimum tax (see instructions):
CESoscrptahetrasulonInd, slti.rnEuertEe amoter theunaom Funt frormom46For,1l0i ,13 􀀂
Individuals. Enter the amount from Form 6251, line 26
Net regular tax. Subtract line 10l from line 7. If zero or less, enter-0-
Enter 25% (.25) of the excess, if any, of line 13 over $25,000 (see instructions)
12 13 14
Enter the greater of line 12 or line 14 Subtract line 15 from line 11. If zero or less, enter-0- Credit allowed for the current year. Enter the smaller of line 6 or line 16 here and on Form 1040, line 49; Form 1120, Schedule J, line 6d; Form 1120-A, Part I, line 4a; Form 1041, Schedule G, line 2c; or the applicable line of your return | |
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17 | | | For Paperwork Reduction Act Notice, see back of form. Cat. No. 16148Z Form 8846 (2000)

FAQs

Which employee tips qualify for the credit on Form 8846?

Claim the credit only for Social Security and Medicare taxes paid by a food or beverage establishment where tipping is customary for providing food or beverages. The form separates tips received that qualify from tips not subject to the credit provisions.

How is the current year credit computed on Form 8846?

Compute creditable tips by subtracting line 2 from line 1, then multiply line 3 by 7.65% to get the current year credit shown on line 4 (as directed in the form instructions).

What is the purpose of Part II on Form 8846?

Part II sets a tax liability limit for the credit. It instructs how to use tax amounts from other forms to determine whether and how much of the credit is allowed for the current year.

Sep 19, 2026

Upload by Quinn