Micibug
Level 2

I'm doing a 2024 tax return for a client who owns a restaurant. It is currently a sole proprietorship so the business activity is on Schedule C. The W3 shows $275,908.15 in tips which qualify for the tips credit of $29k (some is a carryforward from a prior year). Do I have to manually reduce the employer payroll taxes deducted on Schedule C by this amount? 

0 Cheers