Your Restaurant Is Owed Money by the IRS. We Get It Back.

The FICA Tip Credit puts thousands back in the pockets of restaurant, bar, and hospitality owners — retroactively. Most CPAs miss it. We specialize in it.

See What You're Owed →

No upfront cost. No refund, no fee. Takes 60 seconds.

$140,856 FICA Tip Credit refund check $131,239 FICA Tip Credit refund check $124,147 FICA Tip Credit refund check
$1B+
In Tax Credits Processed
10,000+
Businesses Served
100%
IRS Compliance
50
States Covered

What Is the FICA Tip Credit?

A little-known IRS provision that could put $50,000–$250,000+ back in your pocket.

Under Section 45B of the Internal Revenue Code, businesses that employ tipped workers are entitled to a dollar-for-dollar tax credit on the employer portion of FICA taxes (Social Security and Medicare) paid on tips that exceed the federal minimum wage. This is not a deduction — it's a credit that comes directly off what you owe.

The credit has been available since 1993, yet the vast majority of restaurants, bars, and hospitality businesses have never claimed it. Why? Because it requires a specialized, employee-by-employee calculation that most general-practice CPAs don't perform. It's not that your CPA is doing anything wrong — this credit simply falls outside the scope of a standard tax return.

The good news: you can file amended returns for the past three tax years and claim the credit retroactively. That means even if you've never heard of the FICA Tip Credit before today, you could be sitting on a six-figure refund from the IRS right now.

A tax credit is not a deduction. A $50,000 credit = $50,000 directly off your tax bill — or a $50,000 check from the IRS.

Transparency note: ClaimYourTipCredit works in partnership with Tip Credit Partners, one of the nation's leading FICA Tip Credit recovery firms. When you start your free assessment, their team of specialized CPAs handles the calculation, filing, and IRS communication on your behalf. We earn a referral fee — but only when you receive your refund. You never pay anything upfront.

Who Qualifies?

If you operate a hospitality business with tipped employees, chances are you qualify.

Restaurants

Full-service, fast-casual, and fine dining establishments with tipped waitstaff.

Bars & Nightclubs

Any establishment where bartenders and servers earn tips on beverage service.

Hotels & Resorts

Hospitality operations with tipped bellhops, valets, room service, and concierge staff.

Catering Companies

Event catering and banquet services where staff receive tips or service charges.

Coffee Shops

Cafes and coffee shops where baristas receive tips on counter or table service.

Other Hospitality

Salons, spas, food trucks, country clubs — any business with tipped employees.

Core Requirements

  • Business operates in the food, beverage, or hospitality industry
  • Employees receive tips as part of their compensation
  • You've filed at least one federal tax return in the past 3 years
  • Business is a taxable entity (sole prop, LLC, S-Corp, C-Corp)

How It Works

From assessment to refund in four simple steps. We handle the heavy lifting.

1

Take the Free Assessment

Answer a few quick questions to confirm your eligibility. Takes about 60 seconds.

2

We Handle the Paperwork

Our specialized CPA team calculates your credit and prepares your amended returns.

3

IRS Processes Your Claim

We file your amended returns and manage all communication with the IRS on your behalf.

4

You Receive Your Refund

The IRS sends your refund check directly to you. Typical timeline: 16–24 weeks.

Why ClaimYourTipCredit?

We do one thing, and we do it better than anyone.

Specialized Expertise

Unlike general-practice CPAs, the FICA Tip Credit is all we do. Our team has processed over $1 billion in credits and knows exactly how to maximize your refund.

Maximum Returns

Our employee-by-employee calculation methodology ensures you claim every dollar you're entitled to — often 3–5x what a general CPA would find.

Zero Upfront Cost

We operate on a contingency basis. You pay nothing until you receive your refund from the IRS. No refund, no fee — that's our guarantee.

Fast Turnaround

Our streamlined process means your amended returns are typically filed within 2–4 weeks. Most clients receive their IRS refund in 16–24 weeks.

Real Results From Real Businesses

These are actual refund checks received by our clients. Your results may vary based on your business size, employee count, and tip volume.

$140,856

"We had no idea this credit existed. Our CPA of 15 years never mentioned it. The team handled everything and we got a check from the IRS in about 5 months."

Restaurant Owner
Full-Service Restaurant, TX
$131,239

"I was skeptical at first — it sounded too good to be true. But there was no upfront cost so I figured why not. Glad I did. That refund went straight into renovating our bar."

Bar Owner
Sports Bar & Grill, FL
$91,419

"The process was incredibly smooth. I uploaded a few documents, and they took care of the rest. The IRS sent the check directly to us. Easiest money I've ever recovered."

Hotel Manager
Boutique Hotel, CA

Frequently Asked Questions

Everything you need to know about the FICA Tip Credit.

What exactly is the FICA Tip Credit?
The FICA Tip Credit (Section 45B) is a federal tax credit available to employers who pay FICA taxes (Social Security and Medicare) on employee tips that exceed the federal minimum wage. It's a dollar-for-dollar credit against your tax liability — not a deduction. It was enacted in 1993 as part of the Omnibus Budget Reconciliation Act.
How much could my business receive?
The amount varies based on your number of tipped employees, their tip volumes, and how many years you're claiming. Most single-location restaurants receive between $50,000 and $250,000 when claiming all three retroactive years. Multi-location operators can receive significantly more.
Can I really claim this retroactively?
Yes. The IRS allows you to file amended returns (Form 941-X) for the past three calendar years. This means even if you've never claimed the credit before, you can recover FICA taxes you've already paid for the most recent three years. This is the most common scenario for our clients.
Why hasn't my CPA told me about this?
Most CPAs are generalists who handle a wide range of tax situations. The FICA Tip Credit requires a specialized, employee-by-employee calculation using payroll data that goes beyond a standard tax return. It's not that your CPA is negligent — it's that this credit requires niche expertise most firms don't have. We often work alongside your existing CPA.
What types of businesses qualify?
Any business with tipped employees can qualify. This includes restaurants, bars, nightclubs, hotels, resorts, catering companies, coffee shops, food trucks, country clubs, salons, spas, and other hospitality businesses. The key requirement is that you have W-2 employees who receive tips.
How is the credit calculated?
The credit equals the employer's share of FICA taxes (7.65%) on the portion of each employee's tips that exceeds the federal minimum wage ($7.25/hour). This is calculated on a per-employee, per-pay-period basis using your actual payroll records. The calculation is precise but complex, which is why specialized expertise matters.
Will claiming this trigger an IRS audit?
Filing amended returns for the FICA Tip Credit does not increase your audit risk. This is a well-established, congressionally authorized credit. Our filings are 100% IRS-compliant and backed by detailed documentation. Thousands of businesses claim this credit every year without issue.
What documents do I need to provide?
You'll need your quarterly payroll reports (941s), payroll detail by employee showing hours worked and tips reported, and your filed tax returns for the years being claimed. Our team will guide you through exactly what's needed — most clients can gather everything in under an hour.
How long does the entire process take?
The preparation and filing process typically takes 2–4 weeks once we have your documents. After filing, the IRS processing time is usually 16–24 weeks. So from start to refund, you're looking at roughly 5–7 months total.
What does it cost?
Nothing upfront. We work on a contingency basis, meaning our fee is a percentage of the refund you actually receive. If you don't get a refund, you don't pay anything. There are no hidden fees, retainers, or hourly charges.
What is your relationship with Tip Credit Partners?
ClaimYourTipCredit is an authorized referral partner for Tip Credit Partners, one of the nation's leading FICA Tip Credit recovery firms. When you complete our assessment, their team of specialized CPAs handles your case. We earn a referral fee from them — not from you — and only when you receive your refund.
Does claiming the credit affect my wage deduction?
Yes — there is a small offset. When you claim the FICA Tip Credit, you must reduce your business's wage deduction by the amount of the credit. However, the net benefit is still substantial. For example, if your credit is $100,000, you'd lose roughly $21,000–$37,000 in wage deductions (depending on your tax bracket), resulting in a net benefit of $63,000–$79,000. The credit almost always far exceeds the deduction reduction.

Find Out What the IRS Owes You

It takes 60 seconds and costs nothing. Most restaurant owners qualify for $50K–$250K+.

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