W-2 Box 12 Code TP
Code TP reports the total cash tips you reported to your employer for the year. It's already included in your Box 1 wages; it is not extra income.
Reviewed by Saurabh Sharma and Ashay Saraswat · last verified August 31, 2026 against IRS guidance.
Box 12 code TP is a new W-2 field, mandatory starting with 2026 W-2s, created to report the total cash tips you reported to your employer during the year under the One, Big, Beautiful Bill Act (OBBBA). Like code TT for overtime, it's a subtotal, not additional pay: the figure next to code TP is already part of your Box 1 wages.
That figure feeds the no-tax-on-tips deduction, an above-the-line federal deduction of up to $25,000 for tax years 2025 through 2028, subject to a MAGI phase-out — but only for tips earned in an occupation the Treasury has identified as customarily and regularly tipped. That occupation code shows up separately, in Box 14b. See theno tax on tips calculatorto estimate your deduction and tax savings.
This is general information, not tax advice, based on published IRS guidance for tax years 2025–2028. Confirm with a tax professional or the IRS before filing. Nothing you type here leaves your browser.
Frequently asked questions
What is Box 12 code TP on a W-2?
Code TP reports the total cash tips you reported to your employer during the year. It became a mandatory W-2 field starting with 2026 W-2s. It is already included in your Box 1 wages; it is not extra income.
Do all tips qualify for the no-tax-on-tips deduction?
Only cash tips reported to your employer, in an occupation on the IRS's Treasury Tipped Occupation Code (TTOC) list as customarily and regularly tipped on or before December 31, 2024, qualify. Your TTOC appears in Box 14b — a code of 000 means your occupation isn't on that list.
What's the difference between code TP and Box 14b?
Code TP (Box 12) is the dollar amount of tips you reported. Box 14b is a code (or up to two codes) identifying your tipped occupation, which determines whether those reported tips are eligible for the no-tax-on-tips deduction in the first place.