Knowledge Base

13277: 1040 - Form 8846

1040 Individual

In an individual return, how do I enter information for Form 8846, Credit for Employer Social Security and Medicare Taxes Paid on Certain Employee Tips?

There are two options.

  • Use the 8846 screen (on the second Credits tab). The credit is part of the General Business Credit (Form 3800). Entries on the 8846 screen carry to Form 3800, Part III, line 4f, Employer social security and Medicare taxes paid on certain employee tips (Form 8846).
  • If you have a K-1 from a partnership (1065) or S corporation (1120-S), fill out the appropriate K1P or K1S screen, and on the credits line (line 15 for the K1P and line 13 for the K1S) select N, Credit for employee Social Security/Medicare Taxes (Form 8846).

From there, the credit flows to Form 3800 and then to:

  • Schedule 3, line 6a starting with Drake21
  • Schedule 3, line 6 in Drake19-20
  • Schedule 3, line 54 in Drake18
  • Form 1040, line 54 in Drake17

For more information, see the instructions with Form 8846.

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