i’ve heard it’s a new 2026 code but it’ll automatically put in either T or P.
Yes, it's a 2026 code. You won't be filing your 2026 tax return until next year, so it has no bearing on your 2025 taxes.
Hello km041506,
Since you are currently filing your 2025 return, it doesn't apply for this year. However, you will be able to use the code next year on your 2026 returns.
For more information, please review What's New on the 2026 W-2 instructions: https://www.irs.gov/pub/irs-pdf/iw2w3.pdf
That makes more sense, but now what do i even put into box 12 for my tips? when i attempt to leave it empty (still with the amount) it has a reoccurring need for review message. my W2 from last year has it empty, should i leave it fully blank? both code and amount? (i’m a server)
Your tips should be in Box 7 of your W-2, not Box 12. Enter the tip information when you enter your W-2 and it will handle it. https://community.freetaxusa.com/kb/articles/360-how-to-claim-the-obbba-tip-deduction-on-freetaxusa
https://community.freetaxusa.com/kb/articles/360-how-to-claim-the-obbba-tip-deduction-on-freetaxusa
