Recover Thousands in FICA Tip Tax Credits

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• It reduces your federal income tax owed.
   
• If the credit is larger than your tax liability, you don’t get the extra as a refund — it just reduces your tax bill to zero.
   

• You can file amended returns (usually using Form 8846 attached to an amended Form 1120X for corporations or Form 1040-X for sole proprietors/LLCs).
   
• If those amended returns show you overpaid taxes because of the new credit, the IRS will issue a refund check for that overpayment.
   

 if you amend past years and the credit causes an overpayment, you can receive a check.

• You generally have 3 years from the original due date of the return to amend and claim the credit (including extensions).
   
• For example, for tax year 2021, filed in 2022, you’d have until roughly April 15, 2025 to amend and claim the credit.
   

• Form 8846 — “Credit for Employer Social Security and Medicare Taxes Paid on Certain Employee Tips”
   
• Attach to:
   
  • Form 1120X (if corporation)
     
  • Form 1040-X (if sole proprietor)
     
  • Form 1065 with K-1 adjustments (if partnership)
     
• Supporting documentation (IRS may ask for it):
   
  • Payroll records showing reported tips
     
  • FICA tax payments made on those tips
     
  • Employee tip reports and wage breakdowns

If you didn’t claim the credit for previous years (up to 3 years back):

• File an amended tax return:
   
  • Form 1120X (C Corp)
     
  • Form 1040-X (Sole Proprietor/LLC)
     
  • Form 1065 with corrected K-1s (Partnership)
     
• Attach a completed Form 8846 for each year.
   
• Include payroll/tip documentation in your records (not usually submitted, but keep in case of audit).
   

 If the amended return shows an overpayment, the IRS will issue a refund check for the overpaid tax amount.