Updated October 28, 2026. Quick answer: If you or your spouse received qualified tips as an employee of more than one employer in 2025, the Form 1040 instructions send you to this worksheet instead of a single entry. For each employer you take the greater of the W-2 or Form 4070 figure and the Form 4137 figure, add them up, and the total goes on Schedule 1-A line 4c.
Schedule 1-A (Form 1040) for 2025, line by line: Schedule 1-A Part II (tips).
When you use it
Line 4a of Schedule 1-A is for one employer. The instructions say “If you received qualified tips as an employee with respect to employment with more than one employer, enter -0- on line 4a and see the instructions for line 4c.” Then: “Line 4c. If you and/or your spouse received qualified tips as employees with respect to employment with more than one employer, complete the Qualified Tips From More Than One Employer Worksheet.” The form itself words it a little differently: “If you received tips as an employee with respect to employment with more than one employer, enter -0- on lines 4a and 4b and see the instructions to determine the amount to enter on line 4c.” Tips earned by a self-employed person are handled on a separate worksheet, the Multiple Trades or Businesses Worksheet.
The worksheet columns
Line 1 has a row for each of up to five employers, lettered A to E, with four columns.
| Column or line | What the worksheet says |
|---|---|
| (a) | “Name of employer” |
| (b) | “Amount of qualified tips reported by this employer on Form W-2, or reported by you to this employer on Form(s) 4070” |
| (c) | “Qualified tips reported on Form 4137, column 1(c), for this employer” |
| (d) | “Enter the greater of column (b) or column (c)” |
| Line 2 | “Add lines 1A through 1E, column (d), and enter this amount on Schedule 1-A, line 4c” |
Where the figures come from
For 2025 the forms did not separately show qualified tips. The instructions list four ways to figure them: “You can use the amount reported to you on your Form W-2 in box 7.” “You can use the total amount of tips reported to your employer on all your Forms 4070 or any similar form used to report your tips monthly to your employer.” The Form 4137 route is for unreported tips, and column (d) takes whichever of the two figures is greater for each employer.
An example with invented numbers
Illustration, not an IRS example. A server works for two restaurants during the year.
| Employer | Column (b) | Column (c) | Column (d) |
|---|---|---|---|
| A: Employer A | $9,000 | $0 | $9,000 |
| B: Employer B | $6,500 | $7,200 | $7,200 |
| Line 2, computed: 9,000 + 7,200, to Schedule 1-A line 4c | $16,200 (computed) |
Employer A’s tips come from the W-2 only. Employer B reported $6,500 on the W-2 but the filer also filed Form 4137 showing $7,200 for that employer, so column (d) is the greater figure. The two column (d) amounts add to $16,200 for Schedule 1-A line 4c.
The limits that still apply
The instructions cap the deduction and reduce it at higher incomes. “You can’t deduct more than $25,000 of qualified tips, regardless of your filing status.” The $25,000 is then reduced when modified adjusted gross income, the Schedule 1-A line 3 amount, is above $150,000 for single, head of household or qualifying surviving spouse filers, or above $300,000 for married filing jointly. Two further conditions: “If you are married, you must file a joint return with your spouse to claim this deduction.” “You and/or your spouse who received qualified tips must have a valid social security number to claim the deduction for qualified tips.”
Edition
This page reads the Instructions for Form 1040 and 1040-SR (2025), the file irs.gov served on 2026-10-28 (sha256 in the kit data). It covers the 2025 return, filed in 2026. Check the tax year printed on the worksheet in your own copy and use that year’s line numbers and dollar amounts, because a different year’s worksheet can word its lines differently.
Common mistakes
- Adding column (b) and column (c) for the same employer. Column (d) takes the greater of the two, not the sum.
- Entering the total on line 4a. With more than one employer, line 4a is -0- and the worksheet total goes on line 4c.
- Including tips from an occupation that was not on the customary-tips list. The instructions say not to include them.
- Claiming the deduction on a separate return when married. A joint return is required.
Related: Form 4137, W-2 box 7, Form 1040-X lines 4a to 5, and Multiple Trades or Businesses Worksheet.
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Answer againSources
- Instructions for Form 1040 and 1040-SR (2025): https://www.irs.gov/pub/irs-pdf/i1040gi.pdf
- Schedule 1-A (Form 1040) (2025), Additional Deductions: https://www.irs.gov/pub/irs-pdf/f1040s1a.pdf
Read from the IRS documents linked above on October 28, 2026. General information, not tax advice. Your own facts decide the outcome, and a preparer, the account provider or the IRS is the right place to confirm anything consequential.