W-2 Codes for Overtime and Tips: Box 12 TT and TP, Box 14b Occupation Codes
Short answer: Starting with tax year 2026 W-2s, box 12 code TT shows your qualified overtime (only the "half" of time-and-a-half), box 12 code TP shows cash tips you reported to your employer, and box 14b shows one or two Treasury Tipped Occupation Codes (or "000" for a nonqualifying occupation). For 2025, employers weren't required to report them separately. Neither code changes your taxable wages in box 1.
The three new entries, from the IRS instructions
| Where | Code | What the IRS says it reports |
|---|---|---|
| Box 12 | TT | Total amount of qualified overtime compensation: pay required under section 7 of the FLSA that is more than the regular rate. Example: only the "half" portion of time-and-a-half. |
| Box 12 | TP | Total amount of cash tips reported to the employer. A Treasury Tipped Occupation Code must also be listed in box 14b. |
| Box 14b | 3-digit code | Treasury Tipped Occupation Code(s) for the occupations in which tips were received: up to two; "000" if any tips were received in a nonqualifying occupation. |
Source: IRS General Instructions for Forms W-2 and W-3 (2026). Territory forms (W-2AS, W-2CM, W-2GU, W-2VI) should check with their territory for applicability.
What a W-2 might look like (hypothetical)
A restaurant employee who also works overtime as an hourly worker could see entries like this. All figures are made up for illustration.
| Entry | |
|---|---|
| Box 1: wages, tips, other compensation | $58,400 |
| Box 7: social security tips | $21,000 |
| Box 12a | TP $21,000 |
| Box 12b | TT $1,950 |
| Box 14b | 102 |
In this example, the TP amount ($21,000) is the figure that goes into the tips deduction (if the occupation code, 102 for wait staff, is on the list), and TT ($1,950) is the overtime premium for the overtime deduction. Both are included in box 1 wages. Use them in the tips and overtime calculators.
Reading box 14b
- Look up the three-digit codes on the tipped occupations list (101 bartenders, 102 wait staff, 603 hairstylists, 802 rideshare, 804 delivery and so on).
- If you see 000, some of your reported tips were in an occupation that isn't on the list, and you'll need to separate qualified tips from the rest.
- Employers list at most two codes. If you work three tipped jobs for one employer, only two appear.
If your W-2 doesn't have them
- Tax year 2025: not required. The IRS said employers could separately report qualified overtime in box 14 or elsewhere, but didn't have to. Use pay records and Notice 2025-69.
- Tax year 2026 and later: required. If code TT or TP is blank and you think it shouldn't be, ask your payroll department for a corrected W-2c.
- Self-employed or gig work: there is no W-2. Your tips and overtime-type income come from 1099s and your own records; see the rideshare and delivery guides.
The deductions are claimed on Schedule 1-A (tips in Part II, overtime in Part III) with your Form 1040. See how to claim these deductions on Schedule 1-A, and review the MAGI guide if your income is over $150,000.
Frequently asked questions
What is code TT on a W-2?
Box 12, code TT, is the "Total amount of qualified overtime compensation," according to the IRS instructions for Forms W-2 and W-3. It is defined as compensation paid that is required under section 7 of the FLSA and exceeds the regular rate, so for time-and-a-half only the "half" portion is reported.
What is code TP on a W-2?
Box 12, code TP, is the "Total amount of cash tips reported to the employer." The IRS says tips are still generally subject to federal income tax withholding and both the employer and employee share of Social Security and Medicare tax if received tips are $20 or more per month. A Treasury Tipped Occupation Code must also be listed in box 14b.
What goes in box 14b?
Box 14b is for Treasury Tipped Occupation Code(s) when cash tips are reported in box 12 with code TP. Enter up to two codes. If tips were received in more than two occupations, the employer includes the code for any two. If any tips were received in a nonqualifying occupation, "000" must be input as one of the codes.
My 2025 W-2 doesn't show TT or TP. What do I do?
For tax year 2025, the IRS did not require employers to report qualified tips or overtime separately. Some reported overtime in box 14 or through a portal or statement. If yours did not, use your pay records and the methods in IRS Notice 2025-69 and the Schedule 1-A instructions to compute the amounts. For 2026 and later, employers are required to report them separately.
Do the amounts in box 12 reduce my W-2 wages?
No. Boxes 1, 3 and 5 are unchanged: tips and overtime are still wages for federal income tax withholding and for Social Security and Medicare tax. Codes TP and TT only report amounts you may be able to deduct on your return; the deduction itself is claimed on Schedule 1-A.
What if my employer enters the wrong amount?
Ask the employer to correct it with a Form W-2c. Compare the figure against your final pay stub totals and your own tip log. We cannot tell you how a particular employer calculated the figure; the code definitions are what the IRS sets.
Sources and citations
Every dollar figure on this page was checked against the official pages below on November 14, 2026. If an agency updates its guidance, the agency page controls.
- IRS: General Instructions for Forms W-2 and W-3 (2026)
- IRS FS-2026-01: Questions and answers about the deduction for qualified overtime compensation
- IRS: Occupations that customarily and regularly received tips on or before Dec. 31, 2024
- IRS Publication 6133 (Rev. 3-26): tips and overtime deductions
- 2025 Schedule 1-A (Form 1040), Additional Deductions (IRS)