Short answer. Code TT in box 12 is the total qualified overtime compensation your employer paid you. Code TP is the total cash tips you reported to the employer. Box 14b holds the Treasury Tipped Occupation Code for your job. They are the starting amounts for Schedule 1-A, not the deductions themselves: the caps and income phase-outs come after. Employers must give you the 2026 W-2 by February 1, 2027.
The three new entries
| Entry | What the W-2 instructions say it reports | Where it goes |
|---|---|---|
| Box 12, code TT | "The total amount of qualified overtime compensation" | Schedule 1-A, Part III (overtime) |
| Box 12, code TP | "The total amount of cash tips reported to the employer" | Schedule 1-A, Part II (tips) |
| Box 14b | "The Treasury Tipped Occupation Code(s)" | Shows which listed occupation the tips came from |
Box 12 can hold several entries, each a letter code with an amount. Read every one; TT and TP may sit next to codes you have seen on earlier W-2s.
What each amount includes
TT is only the overtime premium the Fair Labor Standards Act requires above your regular rate, not your total overtime pay. If you worked 10 hours of time-and-a-half at a $30 regular rate, your stub shows $450 of overtime pay but only $150 is the premium.
TP covers cash tips you reported. The W-2 instructions explain that qualified tips are cash tips, "which include voluntary cash or charged tips received from customers," and that mandatory service charges added to the bill are not qualified tips. Box 7 (Social Security tips) is a separate figure; don't assume the two will always be the same.
Box 14b is a three-digit code from the IRS list of tipped occupations, such as 101 for bartenders or 102 for wait staff.
Step by step: check your W-2 before you file
- Find TT, TP and 14b. If you worked overtime or received tips and an entry is missing, write down which one.
- Compare TP with your tip records. Add up the monthly cash tip reports you gave the employer for the year and set the total next to code TP.
- Compare TT with your pay stubs. Add up each week's FLSA premium. A quick test for time-and-a-half: total overtime pay divided by 3.
- Check the 14b code against your work. Read the IRS description for that code and make sure it fits what you did.
- Ask for a correction if something is off. For overtime, FS-2026-13 says to ask the employer for a Form W-2c to include an omitted or understated amount, and that a substitute Form 4852 doesn't satisfy the requirement. For tips, ask payroll to explain or correct the figure too.
- Add up all jobs. With two employers you get two W-2s. The caps apply per return, so add the amounts from every W-2 and 1099 before applying them.
A bartender who also works overtime
A bartender's 2026 W-2 shows box 12 code TP $14,600, box 12 code TT $1,140, and box 14b 101. A second, part-time job at a catering company shows code TP $2,300 and box 14b 102.
- Tips: $14,600 + $2,300 = $16,900 goes into Schedule 1-A, Part II. That is under the $25,000 cap.
- Overtime: $1,140 goes into Part III, under the $12,500 single cap.
- Income: modified AGI of $58,000 is below the $150,000 point where both deductions start to phase out, so no reduction applies.
Before filing, the bartender adds up the twelve monthly tip reports given to the main employer. They come to $14,600, matching code TP. The catering job's reports come to $2,450, $150 more than its W-2 shows, so the bartender asks that employer's payroll to explain the difference and, if it's an error, to issue a corrected form.
What 2025 forms looked like
Employers did not have to show qualified tips or overtime separately on 2025 Forms W-2. Some showed overtime in box 14 voluntarily. For 2025, Notice 2025-69 lets employees use box 7, the Forms 4070 they gave their employer, a voluntary box 14 entry or statement, or Form 4137 for tips, and pay stubs for overtime. Starting with 2026 the codes do that job.
What the codes don't decide
The codes report amounts. Whether you can take the deductions depends on the rest of the rules: a Social Security number, a joint return if you are married, an occupation on the IRS list for tips, FLSA-required overtime for the overtime deduction, and the income phase-outs.
Official sources
- IRS: General Instructions for Forms W-2 and W-3 (2026)
- IRS FS-2026-13: updated questions and answers on the qualified overtime compensation deduction (August 2026)
- IRS Notice 2025-69: guidance for individuals who received qualified tips or qualified overtime in 2025
- IRS: Working Families Tax Cuts provisions for individuals and workers (updated Aug. 27, 2026)
- IRS FS-2026-04: Schedule 1-A, Additional Deductions, what to know about the new form
Checked November 2026 on irs.gov and nj.gov.
Common questions
Is the code TT amount my deduction?
No. It is the starting amount. The deduction is capped at $12,500 ($25,000 on a joint return) and phases out above $150,000 of modified AGI ($300,000 joint), worked out on Schedule 1-A.
I worked overtime but there's no code TT on my W-2. Why?
You may be exempt from FLSA overtime, or the employer may have left it off. Ask payroll. If it was omitted, the IRS says you need a corrected Form W-2c to include it.
What is the number in box 14b?
It is the three-digit Treasury Tipped Occupation Code from the IRS list of occupations that customarily and regularly received tips.
Can I use Form 4852 if my employer won't fix the overtime amount?
Not for the overtime deduction. FS-2026-13 says a Form 4852 does not satisfy the reporting requirement.
Will my 2025 W-2 show these codes?
Employers were not required to report tips or overtime separately for 2025. The codes are new on the 2026 form.
When should I receive my 2026 W-2?
The W-2 instructions say employers must furnish it to employees by February 1, 2027.
Related guides: Find the overtime premium on your pay stub · Daily tip log for the tips deduction · Is my job on the tipped occupations list? · W-2 boxes 1 through 14 explained