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.
Calculate Your FICA Tax Credit
Estimates based on IRS Section 45B FICA Tip Credit formula. Creditable tips exclude wages above the federal minimum wage basis. Actual credit subject to IRS review, payroll records, and tax filing. Rates and terms vary. Approval subject to underwriting review.
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.