LeticiaF1
Employee Tax Expert

Deductions & credits

Since the rules on tips changed mid-year, employers are not required to report your tips separately, so most employers reported the tips on BOX 7 of your W2.   You can generally use the amount on Box 7 to determine your qualified tips. 

 

If the amount that was reported on your Box 7, includes allocated tips, or service charges, you can make an adjustment. There is a question after you enter your W2 that asks if you need to change your tip amount.  You can enter the amount of tips that qualify in this question.  

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

tips.jpg