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Yes, that is correct and state by our tax expert @Vanessa A. If you have your pay stubs and a reliable record to arrive at the total allowable tips you can take the deduction even if your employer did not report them on your W-2. 

In order to claim tips, the following must apply:

• The tips MUST be reported.  If they are not reported on a form to the IRS you cannot claim them for the no tax on tips deduction.
  • If employed they need to be reported on your W-2 or form 4137
  • If self-employed, they must be reported on a 1099.  If you received them as cash, they are not deductible. 
• Your income must be below $150,000 if you are single or less than $300,000 if Married Filing Jointly.  Above these amounts, the deduction starts to fade out and is not available at all for those with income over $400,000 for single and $550,000 for Married Filing Jointly.
• You can not claim this deduction if you are Married Filing Separately
• You receive tips from an occupation that normally and customarily receives tips

The Tips deduction question applies to both TurboTax Desktop and TurboTax Online. 

After you complete the W-2 information you will reach a screen:

1.  'Let's check for other situations', select the checkbox next to 'Tips not reported on my W-2'. 
2. Once this is completed TurboTax will walk you through the remaining questions about your tips. 
3. The next screen is 'Now let's enter your unreported tips'.
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From the left rail menu in TurboTax Online, select Tax Tools (You may have to scroll down on the left rail menu.)

1. Select Tax Tools
2. On the drop-down select Tools
3. On the pop-up menu titled “Tools Center”, select View Tax Summary 
4. On the left sidebar, select Preview my 1040 

For TurboTax Desktop, change to 'Forms' and review the forms 

The deduction is reported on Schedule A-1 (new for 2025).

@malenasdad