How do i input code TP (qualified tips) into box 12a?

km041506
km041506 Member Posts: 2 Newcomer
in Filing my taxes

i’ve heard it’s a new 2026 code but it’ll automatically put in either T or P.

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Answers

  • JMSSGV
    JMSSGV Member, Star Posts: 332 image

    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.

  • kiarab
    kiarab FreeTaxUSA Agent Posts: 285 image
    edited April 8

    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

  • km041506
    km041506 Member Posts: 2 Newcomer
    edited April 9

    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)

  • JMSSGV
    JMSSGV Member, Star Posts: 332 image

    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

  • JMSSGV
    JMSSGV Member, Star Posts: 332 image

    https://community.freetaxusa.com/kb/articles/360-how-to-claim-the-obbba-tip-deduction-on-freetaxusa

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