2026 tax year · furnished by January 31, 2027
2026 W-2 Box 12 Decoder
The 2026 Form W-2 added three Box 12 codes — TA, TP and TT — and a new Box 14b for the Treasury Tipped Occupation Code. Enter what is on your form and this decodes every code, then tells you whether the tips and overtime amounts actually survive the Schedule 1-A caps and MAGI phaseouts.
Nothing you type leaves your browser. Estimates only — not tax advice.
Your return
For most people this is simply AGI. Schedule 1-A Part I only adds back excluded foreign and territory income.
Used only to translate the deduction into cash.
What this W-2 is worth on Schedule 1-A
Box 12 codes TP and TT flow to Schedule 1-A Parts II and III. Caps and the MAGI phaseout apply before anything reaches your return.
| Schedule 1-A part | On the W-2 | After cap | Phaseout | Deduction |
|---|---|---|---|---|
| Qualified tips (Part II) | $18,400 | $18,400 | — | $18,400 |
| Qualified overtime (Part III) | $3,100 | $3,100 | — | $3,100 |
Deduction
$21,500
Roughly worth
$4,730
A deduction reduces taxable income, so the cash value is the deduction times your marginal rate — not the deduction itself.
Your codes, decoded
Your qualified tips for the year. This is the substantiation for the Schedule 1-A tips deduction — it is already inside Box 1, and Schedule 1-A subtracts the deductible part.
The FLSA-required overtime PREMIUM only — the extra half in time-and-a-half, not your whole overtime paycheck. Already inside Box 1; Schedule 1-A subtracts the deductible part.
Your pre-tax 401(k) contributions. Already excluded from Box 1.
Informational only. It is not taxable and it is not a deduction.
What changed on the 2026 Form W-2
Public Law 119-21 created three benefits that an employer has to substantiate on the W-2, so the IRS added a code for each. The catch is that only one of the three was excluded from your taxable wages.
Employer contributions to a Trump account
Section 128 employer contributions to the Trump account of an eligible dependent. This money was NOT taxed — it is excluded from Box 1, so it is not a deduction you claim again.
Total cash tips reported to the employer
Your qualified tips for the year. This is the substantiation for the Schedule 1-A tips deduction — it is already inside Box 1, and Schedule 1-A subtracts the deductible part.
Total qualified overtime compensation
The FLSA-required overtime PREMIUM only — the extra half in time-and-a-half, not your whole overtime paycheck. Already inside Box 1; Schedule 1-A subtracts the deductible part.
Every Box 12 code on the 2026 Form W-2
| Code | What it reports | In Box 1 wages? |
|---|---|---|
| A | Uncollected Social Security or RRTA tax on tipsTip tax your employer could not collect from your pay. It is added back on your return. | No |
| B | Uncollected Medicare tax on tipsMedicare tax on tips your employer could not withhold. It is added back on your return. | No |
| C | Taxable cost of group-term life insurance over $50,000The imputed value of employer-paid life insurance above $50,000. Already taxed. | Yes |
| D | Elective deferrals to a 401(k)Your pre-tax 401(k) contributions. Already excluded from Box 1. | No |
| E | Elective deferrals to a 403(b)Pre-tax 403(b) contributions. Already excluded from Box 1. | No |
| F | Elective deferrals to a 408(k)(6) SARSEPPre-tax SARSEP contributions. Already excluded from Box 1. | No |
| G | Deferrals and employer contributions to a 457(b)Pre-tax governmental/tax-exempt 457(b) amounts. Already excluded from Box 1. | No |
| H | Elective deferrals to a 501(c)(18)(D) planA rare pre-tax union plan deferral. Already excluded from Box 1. | No |
| J | Nontaxable sick payThird-party sick pay that is not taxable. Not in Box 1. | No |
| K | 20% excise tax on excess golden parachute paymentsAn excise tax already withheld on excess severance. Enter as other taxes on your return. | Not wages |
| L | Substantiated employee business expense reimbursementsReimbursements you documented, so they were not taxed. | No |
| M | Uncollected Social Security or RRTA tax on group-term life (former employees)Life insurance tax your former employer could not collect. | No |
| N | Uncollected Medicare tax on group-term life (former employees)Medicare tax on life insurance your former employer could not collect. | No |
| P | Excludable moving expense reimbursements (Armed Forces)Tax-free moving reimbursements for active-duty military moves. | No |
| Q | Nontaxable combat payCombat pay excluded from income. You may elect to count it for EITC. | No |
| R | Employer contributions to an Archer MSAEmployer MSA money. Report on Form 8853. | No |
| S | Salary reduction contributions to a 408(p) SIMPLEPre-tax SIMPLE IRA contributions. Already excluded from Box 1. | No |
| T | Adoption benefitsEmployer adoption assistance. Figure the taxable part on Form 8839. | No |
| V | Income from exercise of nonstatutory stock optionsOption spread already taxed as wages. Use it to set your cost basis so you are not taxed twice. | Yes |
| W | Employer and employee contributions to an HSAAll HSA money that ran through payroll. Reconcile on Form 8889 — and see the FSA interaction below. | No |
| Y | Deferrals under a 409A nonqualified deferred compensation planReporting is not currently required, so this is rarely populated. | No |
| Z | Income under a 409A nonqualified deferred compensation planDeferred comp that failed 409A. Taxable, plus an additional tax. | Yes |
| AA | Designated Roth contributions under a 401(k)After-tax Roth 401(k) money. Already inside Box 1. | Yes |
| BB | Designated Roth contributions under a 403(b)After-tax Roth 403(b) money. Already inside Box 1. | Yes |
| DD | Cost of employer-sponsored health coverageInformational only. It is not taxable and it is not a deduction. | No |
| EE | Designated Roth contributions under a governmental 457(b)After-tax Roth 457(b) money. Already inside Box 1. | Yes |
| FF | Permitted benefits under a QSEHRASmall-employer HRA benefit available to you. Affects premium tax credit math. | No |
| GG | Income from qualified equity grants under section 83(i)Deferred stock income now taxable. | Yes |
| HH | Aggregate deferrals under section 83(i) electionsRunning total of stock income you elected to defer. | No |
| II | Medicaid waiver payments excluded from gross incomeNotice 2014-7 caregiver payments excluded from Box 1. You may elect to count them as earned income for EITC. | No |
| TAnew | Employer contributions to a Trump accountSection 128 employer contributions to the Trump account of an eligible dependent. This money was NOT taxed — it is excluded from Box 1, so it is not a deduction you claim again. | No |
| TPnew | Total cash tips reported to the employerYour qualified tips for the year. This is the substantiation for the Schedule 1-A tips deduction — it is already inside Box 1, and Schedule 1-A subtracts the deductible part. | Yes |
| TTnew | Total qualified overtime compensationThe FLSA-required overtime PREMIUM only — the extra half in time-and-a-half, not your whole overtime paycheck. Already inside Box 1; Schedule 1-A subtracts the deductible part. | Yes |
Questions people ask about this
What are the new Box 12 codes on the 2026 Form W-2?
Three codes are new for 2026. Code TA reports Section 128 employer contributions to a Trump account for an eligible dependent, and that amount is excluded from Box 1. Code TP reports the total cash tips you reported to your employer. Code TT reports total qualified overtime compensation. TP and TT are already included in Box 1 wages — they identify the slice that may be deductible on Schedule 1-A, they are not additional income.
What is Box 14b on the 2026 W-2?
Box 14b carries the Treasury Tipped Occupation Code (TTOC), a three-digit code from the closed list of tipped occupations Treasury published. It is what links the tips in Box 12 code TP to a qualifying occupation. Up to two codes can appear if you worked in two tipped occupations.
Does a Box 12 code TT amount mean my overtime is tax free?
No. Code TT reports only the FLSA-required overtime premium — the extra half in time-and-a-half, not the whole overtime paycheck. That amount is then capped at $12,500 ($25,000 married filing jointly) and reduced by $100 for every $1,000 of modified AGI over $150,000 ($300,000 joint). It is also a deduction against income, not a refund, so the cash value is the deduction times your marginal rate.
My W-2 shows tips in Box 12 code TP but Box 14b is empty. What now?
Ask your payroll department to correct it before you file. Box 14b is the substantiation that your occupation is on the Treasury list, and without it the tips deduction has no supporting occupation code on the form.
Is Box 12 code TA taxable?
No. Employer contributions to a Trump account under Section 128 are excluded from Box 1 wages, so the money was never taxed. That also means it is not a deduction you claim again on your return — the exclusion already happened on the W-2.
When will I get a W-2 with these codes?
The 2026 Form W-2 reports 2026 wages and is furnished to employees by January 31, 2027. For the 2025 tax year employers reported these amounts under transition relief, often in Box 14 or on a separate statement, so a 2025 W-2 will usually look different.
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