Last year, the W-2 had no dedicated place for tips or overtime. For tax year 2026, that workaround is gone. The IRS's 2026 General Instructions for Forms W-2 and W-3 split box 14 in two and add new box 12 codes built for exactly this purpose. A box 14 label created for tax year 2025 doesn't carry into 2026, because the form itself changed.
Quick answer
Box 12 gets three new codes: TA for Trump account contributions, TP for cash tips, and TT for qualified overtime compensation. Box 14 itself splits into 14a (the old "other" catch-all) and 14b, a new field for the employee's Treasury Tipped Occupation Code. None of this changes payroll tax treatment. Tips and overtime still count toward withholding and FICA. The new fields change how the data reaches the employee's tax return.
The One Big Beautiful Bill Act (P.L. 119-21) changed what employers and payers report on W-2s and 1099s, starting with tax year 2026. Workers claim the new deductions on their own tax returns. Employers and payers report the amounts.
| Box | What changed |
|---|---|
| Box 12, code TP | Total cash tips reported to the employer. You must also list an occupation code in box 14b. |
| Box 12, code TT | Total qualified overtime compensation: the amount above the regular rate that the FLSA requires, such as the "half" in time-and-a-half. |
| Box 12, code TA | Employer contributions to the Trump account of an employee or an employee's dependent, paid under a section 128 Trump account contribution program. |
| Box 14a | "Other," the same use as the old box 14. |
| Box 14b | Treasury Tipped Occupation Code(s). Enter up to two codes. Required when box 12 code TP reports cash tips. |
Box 12 code TP: reporting cash tips
Use code TP to report the total cash tips your employee reported to you during the year. You're already tracking these tips for Social Security and Medicare purposes. What's new is that the amount now gets its own line, because it feeds directly into the employee's No Tax on Tips deduction.
Code TP also requires the employee's Treasury Tipped Occupation Code in box 14b, because only tips earned in a qualifying occupation count toward the deduction. We built out the full list here: No tax on tips: the IRS has finalized the qualifying occupation list.
Separate accounting is required starting with tax year 2026. The penalty relief that covered 2025 filings doesn't carry forward.
Code TT captures qualified overtime compensation, but only the premium portion required under FLSA section 7. In plain terms: if an hourly employee works overtime at time-and-a-half, only the "half" counts toward TT. The base rate they'd have earned regardless doesn't. Get this wrong, and your employee either claims a deduction they can't defend or misses one they're entitled to.
Same caveat as tips: reporting overtime with code TT doesn't exempt it from withholding or FICA. The box supports the employee's deduction. It doesn't change what you owe.
Box 14a still does what box 14 used to do: state disability insurance, union dues, anything without its own dedicated box.
Box 14b is new and single-purpose. It holds the Treasury Tipped Occupation Code (up to two) and is required any time you report cash tips with code TP.
Employee copies and SSA filing are both due February 1, 2027, because January 31 falls on a Sunday.
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Bookmark Your Copy →Note: This information is for informational purposes only and does not constitute formal tax, legal, or compliance advice. Always consult with qualified tax advisors, legal counsel, and your organization's internal teams for guidance specific to your situation. Additional regulations may apply. For the most accurate and up-to-date information, refer to official government resources and regulatory agencies.