: Unreported income is not credited to your Social Security history, potentially lowering your future monthly benefit payments .
: Tips under $20 in a month don't need to be reported to your employer, but they still must be included as income on your Form 1040 . Filing Mechanics : Unreported income is not credited to your
: Using IRS Form 4137 fulfills your legal responsibility to report all income and helps avoid IRS audits or penalties . Who Must File Who Must File : If you received $20
: If you received $20 or more in cash and charge tips in any calendar month and did not report the full amount to your employer . : Unreported income is not credited to your
: Filing ensures this income is credited to your Social Security record, which directly affects the calculation of your future retirement and disability benefits .