KrisD15
Expert Alumni

Retirement tax questions

If the tip total is not reported in Box 7 because you are a high earner, you can still claim the full amount if you reported that full amount to your employer on Form 4070 and it is included in Box 1 of your W-2.

 

For Tax Year 2025, the IRS had not updated Form W-2 and box 7 only reports SOCIAL SECURITY tips. 

Schedule 1-A, used to claim the "No Tax on Tips" deduction also is not ready.

 

I suggest you wait until the IRS addresses this situation, the Forms and Schedules involved, and provides guidance on how to report. 

It isn't a TurboTax error, it just has not been resolved by the IRS yet. 

 

Here is a link to an IRS article on how to handle the tip situation for tax Year 2025. 

 

 

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