Essential IRS Resources & Federal Forms
Access the official documentation required for claiming your FICA Tip Credit and navigating the IRS Form 8846 process.
The information on this website is for general educational purposes only and does not constitute tax, legal, or financial advice. No attorney-client or CPA-client relationship is created by use of this site. Always consult a licensed CPA, Enrolled Agent, or tax attorney for advice specific to your situation.
How to Apply for the FICA Tip Credit
Step-by-step instructions for salon owners and beauty professionals to claim the federal deduction.
01
Verify Eligibility
Confirm your salon, spa, or barber business qualifies for the federal FICA Tip Credit under IRS Section 45B.
02
Employers Complete IRS Form 8846
Employers must complete IRS Form 8846 to calculate and claim the FICA Tip Credit for reported employee tips.
03
Employees Complete Schedule 1-A
Employees claiming the federal qualified tip deduction should complete Schedule 1-A when filing their individual federal tax return.
04
File With Your Tax Return
Employers should submit Form 8846 with their business tax return. Employees claiming tip deductions should include Schedule 1-A with their individual return.
05
Receive Your Tax Benefit
Approved claims may reduce federal tax liability through either the employer FICA Tip Credit or the employee qualified tip deduction.