Get Your FICA Tips Tax Credit
Unlock the FICA Tip Credit
Food, Beverage, and Beauty businesses can recover up to 7.65% on employee tips.
Valiant Capital helps you calculate and claim a dollar-for-dollar federal income tax credit issued by the IRS via refund check(s) or tax offset.
- Qualifications for the FICA Tip Credit
- What we need
- How to Claim the FICA Tip Credit
- What does it Cost?
Qualifications for a FICA Tax Credit Advance
To qualify for the FICA Tip Credit, your business should meet the following criteria:
- Restaurant, bar, food service, or beauty service provider (nail/hair salons & spas)
- U.S.-based operating business with W-2 employees receiving tips
- Payroll reports reflect tips by employee
- Filed business tax returns (1120 / 1120-S / 1065)
- Can claim retroactively for up to 3 years
What we need
To get started, we’ll ask for::
- Payroll reports showing tips (by employee per month, including hours and tips) for all years being applied for
- POS tip reports (if separate)
- Last filed business tax return (1120 / 1120-S / 1065)
We handle the calculation and filing support and coordinate with your CPA.
How to Apply for a FICA Tax Credit Advance
- Complete our quick online application to start the process.
- Submit your payroll tip reports and last filed business return.
- We calculate your credit and prepare IRS Form 8846.
- We coordinate with your CPA to file and help you receive your refund/offset.
To get started, please complete our quick app to start the application process.
Or email us at capitalmarkets@valiant-capital.com and we will get back to you as soon as possible.
What does it Cost?
- Credit Amount: Equals 7.65% of eligible tip wages (employer-paid FICA on tips above federal minimum wage)
- Typical Benefit: Often $500–$3,000+ per employee per year
- Larger Outcomes: Many restaurants recover $25k–$250k+ annually
- Claim Window: Can be claimed retroactively for up to 3 years
- Issuance: Issued by the IRS via refund check(s) or tax offset
This is a federal income tax credit, not a loan, not income-tested, and it does not reduce cash flow.
Benefits of the FICA Tip Credit
- Recover employer-paid FICA taxes on eligible tip wages
- Dollar-for-dollar federal income tax credit
- IRS-issued refund check(s) or tax offset
- Often $500–$3,000+ per employee per year
- Retroactive claims up to 3 years
This is ideal for tip-driven businesses that want to recover payroll tax dollars they’re already paying.