Leveraging Box 14 for 2025

Box 14 on Form W-2 is an “Other” box employers may use to provide supplemental, informational amounts that do not have a dedicated W-2 reporting field. 

Because the IRS does not assign standardized codes to Box 14, employers may use their own clear descriptions or abbreviations to explain what the reported amount represents. 

With the new qualified overtime and qualified tip deductions enacted under the One Big Beautiful Bill Act, IRS reporting requirements are being phased in over time. The IRS confirmed that 2025 is a transition year, meaning: 

• W-2 forms do not yet include dedicated boxes or codes for qualified tips or qualified overtime 
• Employers are not required to separately report these amounts for 2025 

That said, the IRS encourages employers to provide this information anyway, and Box 14 of the W-2 is an acceptable — and preferred — method for doing so. 

Make sure to:

• Use clear, specific labels so employees and tax preparers understand what the amount represents 
• Communicate that Box 14 is informational only and does not change taxable wages or withholding by itself 
• Don’t combine multiple items into a single, unlabeled Box 14 amount
  

For payroll teams and tax preparers alike, Box 14 is often the cleanest and most practical way to give employees the documentation they need to claim these deductions. 

IRS Notice 2025-69 allows employers to furnish qualified tip and overtime information using other secure methods for tax year 2025. Acceptable alternatives include providing a separate written or digital statement, such as: 

• A year-end earnings statement 
• A printed letter 
• A digital payroll summary or PDF via a payroll portal 
• POS system tip totals 
• Employer-maintained electronic or manual tip logs 

These statements may include: 

• Total cash tips 
• Total qualified overtime compensation 
• Occupation information 
• Any additional details employees may need to substantiate their deductions 

Even though reporting is optional for 2025, IRS guidance strongly suggests that employers: 

• Provide qualified tip and overtime information in Box 14, or 
• Furnish a separate year-end statement with the relevant details 

Doing so helps employees claim deductions of up to $25,000 for tips and $12,500–$25,000 for overtime, and positions your payroll process for mandatory, standardized reporting beginning in 2026.