Do you have a business that includes TIP income? The most common ones are bars, restaurants, salons and similar businesses where employees receive tips.
In 2025 there is a new tax law that makes Tip Income non-taxable, up to the first $25,000 for each tipped employee. Most businesses reported the full Tip income on the 2025 tax return, and paid the Employer portion of FICA Tax.
If you fall into this group you are entitled to file for a Credit or income tax Refund from your 2025 tax return. In some cases the Credit will carry forward, or you may receive a Cash Refund.
This is not related to payroll taxes, and your payroll tax company will not be able to help you with this application.
You will need the help of a qualified tax professional to claim your Credit or Refund. Please contact me today and we can set up a free review of your tax return to determine if your company qualified under this new program, and make an estimate of how much you may receive.
Please use the contact form on the website and let me know you are interested in the Tip Income FICA tax credit program.