Do I add wages (box 1 w-2) + allocated tips(box 8 w-2) to get the amt for line 7 on 1040?

correct; aslongas you need to report allocated tips, yu must badd the amounts in boxes 8 of your Form W-2 and report the total on the wages, salaries, tips, etc. on line 7 of Form 1040. You cannot use Form 1040EZ or 1040A in this case.

allocated tips are shown separately in box 8 of your Form W-2 and are not included in the total in box 1 of w2 ;needless to say, you must report allocated tips on your tax return by including it on line 7 1040. Since soc. Sec. taxes were not withheld from the allocated tips, you will have to calculate these taxes on Form 4137.