Guides › W-2 Box 12 Codes TT and TP and Box 14b: What They Mean
W-2 Box 12 Codes TT and TP and Box 14b: What They Mean
Educational information only. Not tax advice. Not affiliated with the IRS. Check IRS.gov or a tax professional about your own situation. Last checked against IRS sources: October 17, 2026. Examples use made-up numbers.
Short answer: According to the IRS instructions for the 2026 Form W-2, code TT in box 12 is the total of qualified overtime compensation, code TP is the total of cash tips reported to the employer, and the new box 14b shows the Treasury Tipped Occupation Code(s) for the tips. They are meant to help you fill in Schedule 1-A for the "no tax on tips" and "no tax on overtime" deductions.
The three new entries (2026 W-2)
| Entry | What the IRS instructions say |
|---|---|
| Box 12, code TT | "Total amount of qualified overtime compensation." Qualified overtime is pay above the regular rate required under section 7 of the Fair Labor Standards Act (FLSA); for example only the "half" portion of "time-and-a-half" is reported with TT. |
| Box 12, code TP | "Total amount of cash tips reported to the employer." The employer must also list an occupation code in box 14b. |
| Box 14b | Treasury Tipped Occupation Code(s), used when cash tips are in box 12 with code TP. Up to two codes. If any tips were received in a nonqualifying occupation, "000" must be entered as one of the codes. |
Box 14 on the 2026 W-2 was split: what used to be box 14 "Other" is now box 14a; box 14b is new (IRS W-2/W-3 instructions, "What's New").
Important: tax year 2025 vs 2026
- These codes appear on forms for 2026 wages. Employers must file 2026 Forms W-2 with the SSA and furnish them to employees by February 1, 2027 according to the 2026 instructions.
- For your 2025 return (filed in 2026), the IRS did not require these separate entries. Notice 2025-69 gave transition relief so you could use existing data (for example W-2 box 7 for tips) and a reasonable method for overtime. See My W-2 doesn't show tips or overtime separately.
How the codes connect to Schedule 1-A
- Overtime: Schedule 1-A line 14a asks for "qualified overtime compensation included in Form W-2, box 1" (2025 form). Whether a code-TT amount fits that line exactly for 2026 depends on the 2026 form and instructions, which we have not read.
- Tips: Schedule 1-A line 4a (2025 form) uses W-2 box 7 for qualified tips. How code TP is expected to be used on the 2026 Schedule 1-A is not something we verified; see "What we could not verify".
Things the codes do not tell you
- Code TP is cash tips reported to the employer. It is not by itself a determination that your tips are "qualified" or that you are eligible: your occupation, SSTB status, income and filing status still matter. See tipped occupation list and qualified tips.
- Code TT is not a guarantee that the full amount is deductible: caps ($12,500, or $25,000 if married filing jointly) and a phase-out apply. See phase-out.
If an amount looks wrong
Ask your employer for a corrected Form W-2c. The IRS instructions describe how employers correct boxes 12 (including TP and TT) and 14b on Form W-2c.
FAQ
Is the TT amount my whole overtime pay? No; the IRS describes it as the portion above the regular rate (for example the "half" of time-and-a-half).
Why does box 14b have "000"? Per the instructions, it shows that some tips were received in a nonqualifying occupation.
Do TT and TP change my federal withholding? The IRS instructions say tips and overtime are still generally subject to income tax withholding and social security and Medicare taxes. My 2025 W-2 has none of this. Expected: see the transition page.
What we could not verify
- The 2026 Schedule 1-A and its instructions (not yet read; we used the 2025 form).
- How employers apply these codes in practice and whether your payroll provider reported them correctly.
- State tax treatment.
Sources (IRS)
- IRS, General Instructions for Forms W-2 and W-3 (2026) (Jan 29, 2026) — https://www.irs.gov/pub/irs-pdf/iw2w3.pdf (read October 17, 2026)
- IRS, Schedule 1-A (Form 1040), Additional Deductions, 2025 (created 11/4/25) — https://www.irs.gov/pub/irs-prior/f1040s1a--2025.pdf (read October 17, 2026)
- IRS, Notice 2025-69 (transition relief for tax year 2025) — https://www.irs.gov/pub/irs-drop/n-25-69.pdf (read October 17, 2026)
- IRS, One Big Beautiful Bill Act: Tax deductions for working Americans and seniors, FS-2025-03 (July 14, 2025; updated July 25) — https://www.irs.gov/newsroom/one-big-beautiful-bill-act-tax-deductions-for-working-americans-and-seniors (read October 17, 2026)
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Not tax advice. Examples use made-up figures. Nothing here has been reviewed by a tax professional. See the disclosure.