IRC §45B Tip Credit Recovery
Your business has already paid this tax credit. Now it's time to claim it back.
Restaurants, bars, salons, and spas with tipped W-2 employees qualify for the FICA Tip Credit under IRC §45B. We calculate, file Form 8846, and recover up to 3 prior years — specialist and CPA reviewed.
IRC §45B
Qualified Credit
Form 8846
Filed With Return
3 Years
Look-Back Available
CPA + Specialist
Reviewed
$1,300+
Average annual credit per tipped employee
7.65%
Of qualifying tip base returned
3 years
Retroactive look-back recovery
1. Tell us about your business
Quick 10-minute intake employees, tips, payroll basics.
How it works
From intake to credit here's the process.
2. Specialists calculate your credit
We compute qualifying tip base and credit per year.
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3. We prepare Form 8846
Engineer + CPA reviewed package, ready to file.
4. File with your return
Filed with current year or amended for prior years.
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5. Credit applied refund issued
Reduces tax owed or generates a refund check.
Who This Is For
If your employees receive tips and you pay payroll taxes, you likely qualify.
Food & Beverage
Threshold: §45B frozen rate — $5.15/hr
Restaurants, bars, cafés, hotels, catering
W-2 employees receiving reported tips
Employer pays FICA on those tips
Tips reported on Form 8027 or equivalent
Currently filing or have filed past returns
Salons / Personal Care
Threshold: $7.25/hr — 2025 expansion (One Big Beautiful Bill Act)
Salons, barbershops, nail salons, spas
Tipped W-2 stylists, barbers, technicians
Employer-paid FICA on reported tips
Service-based business with consistent tipping
Newly eligible under 2025 expansion
The §45B program
Qualifying Tip Base x 7.65% = Annual Credit
Annual Credit x Prior Years = Retro Recovery
Annual x Retro = Total Credit
Filed via Form 8846 → General Business Credit (Form 3800)
The §45B program
A federal tax credit Congress wrote specifically for tipped-employee businesses.
Under Internal Revenue Code §45B, the employer’s share of FICA (Social Security and Medicare) tax paid on tip income above the federal threshold is returned as a dollar-for-dollar tax credit — not a deduction. It’s claimed on Form 8846 and flows into the General Business Credit on Form 3800.
Most owners never claim it. We recover what you’ve already paid — and amend up to 3 prior years.