Tax year 2026
The new W-2 boxes for tips and overtime
Your 2026 W-2 carries figures that did not appear on any previous form. None of them change what was withheld — they exist so you can claim the new deductions.
For tax year 2025 the IRS granted transition relief: employers were not required to report qualified tips or qualified overtime separately, and most did not. Tax year 2026 is the first year that reporting is mandatory, so the codes below are appearing on real W-2s for the first time in January 2027.
Box 12
Code TP
Code TP is the total of your qualified tips for the year — the figure the tip deduction is calculated from.
Box 12
Code TT
Code TT is the FLSA-required overtime premium — the 'half' in time-and-a-half, not your total overtime pay.
Box 14
Box 14b
Box 14b holds your Treasury tipped occupation code — a three-digit number identifying your job as one that customarily receives tips.
None of these boxes change your paycheck
Codes TP and TT are informational. They do not affect federal income tax withholding, they do not reduce Social Security or Medicare tax, and they do not by themselves change your state tax. Their only job is to give you the figures you need for Schedule 1-A when you file.
What to do next
Once you have the figures, work out what they are actually worth with the tip deduction calculator or the overtime deduction calculator, then see how to put them on Schedule 1-A.