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Level 2
January 23, 2026
Question

Where do I find the no tax on tips deduction?

  • January 23, 2026
  • 1 reply
  • 0 views

Where do I find the no tax on tips deduction?

On my w2 it says total income + tips and has the total number and my employer didn’t input the tips into box 7, but on my pay stub they show as tips. Not service charges, but voluntary tips. I qualify for the full $25,000 deduction but how do I find that in the app??! 

I don’t want to have to ask my employer for them to redo my w2.

 

Thanks! 

1 reply

Level 12
January 25, 2026

Since the law was passed in the middle of the year, a lot of employers might not be reporting the tips on Box 7.  You will need to report your tips based on what is reported on your last paystub.  Make sure that the amount reported on your paystub are "voluntary tips"  because mandatory service charges do not qualify for the deduction.   

 

You will need to enter this amount as "qualified tips,"  when TurboTax asks for them.  This will be asked after you enter your W2 information.  

 

No Tax on Tips: How It Works in the One Big Beautiful Bill

How do I enter unreported tips?

How do I import or enter my W-2?

KevOzzy11Author
Level 2
January 26, 2026

I called and spoke with a representative for an hour and there is nowhere for me to add anything about qualified tips. "After the w2 is entered" is very vague guidance, so I am not sure what you are referring to or where I can find that. I am going to have to do my taxes outside of turbo tax this year as I believe it isn't set up properly yet for me to input tips and receive the big deduction. Thanks for your response though.

VolvoGirl
Level 15
January 26, 2026

After you enter the W2 will be a screen of uncommon situations.  The second item is Tips.