Tip compliance and tax refund.

February 11, 2008 11:53 AM

Tip compliance. I made $4000 in wages this year, paid $95 in income tax and another $400 in 'social security tips.' Am I going to get that 400 dollars back in my refund?

I made about $6000 in tips and am single.

posted by clearly to law & government (7 comments total)

Also, I only have to file a federal return.
posted by clearly at 12:07 PM on February 11

social security is paid from the first dollar of income so I would say no.

But I am not an IRS agent.
posted by panamax at 12:10 PM on February 11

Nope. That money went to the Social Security administration, to your unemployment insurance, etc etc. It isn't the IRS's to give back.
posted by nomisxid at 12:10 PM on February 11

That said, you might still get a theoretically "tax refund" stimulus check to stimulate you.
posted by ROU_Xenophobe at 12:36 PM on February 11

It isn't the IRS's to give back.

Pedantic point that doesn't affect the OP: if too much social-security tax is withheld from your paycheck due to having multiple employers during a year when your wages exceed the FICA wage base, the IRS will "give back" the excess as a credit against your income taxes.

The IRS also collects the self-employment tax, which ends up as Social Security and Medicare contributions in the end.
posted by backupjesus at 12:50 PM on February 11

Are you talking about SS Tips on your W-2 (box 7)? That is not tax withheld.
posted by dzot at 1:09 PM on February 11

No refund, but you may qualify for the Earned Income Tax Credit which would more than offset the $400.
posted by hexatron at 1:16 PM on February 11