topic Where do I find the no tax on tips deduction? in Deductions & credits

Where do I find the no tax on tips deduction?

KevOzzy11 — Fri, 23 Jan 2026 07:22:19 GMT

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!

Re: Where do I find the no tax on tips deduction?

LeticiaF1 — Sun, 25 Jan 2026 18:14:14 GMT

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?

Re: Where do I find the no tax on tips deduction?

KevOzzy11 — Mon, 26 Jan 2026 03:57:49 GMT

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.

Re: Where do I find the no tax on tips deduction?

VolvoGirl — Mon, 26 Jan 2026 04:03:17 GMT

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

Re: Where do I find the no tax on tips deduction?

rsutherl — Wed, 25 Feb 2026 01:00:22 GMT

On Mac, Turbo Tax Deluxe 2025 desktop version. There is no option for the tips deduction that is part of the Bi beautiful bill”. Nor will the software allow me to Manually update schedule 1-A . All tips were included in box 1 of W2, with nothing in boxes 7 or 14 . Last paystub has the tip amount, but I have no way to enter it.

Re: Where do I find the no tax on tips deduction?

rsutherl — Wed, 25 Feb 2026 01:02:50 GMT

That Tips section is not showing on Mac desktop version.

Re: Where do I find the no tax on tips deduction?

DawnC — Wed, 25 Feb 2026 01:37:24 GMT

After you enter the W2, there will be a screen titled Do any of these uncommon situations apply? Choose Tips included in box 1 of my W-2, but not in boxes 7 or 14.

How to enter tips >> In some cases, your employer may have included your tips in your total wages (Box 1) but didn’t separately list them into Box 7 or Box 14.

If you're manually breaking out tips from Box 1, make sure the amount you claim matches the tip reports (Form 4070 or similar form) you gave your employer during the year, or your own daily tip log. And of course, make sure you’re eligible for this deduction.

TurboTax will ask you a few questions about your tips, and automatically calculate the deduction if you qualify.

@rsutherl

Re: Where do I find the no tax on tips deduction?

rsutherl — Wed, 25 Feb 2026 02:59:53 GMT

Dawn, The option you mention does not exist in the Mac Desktop version. I’m completely up to date with current updates. Maybe it’s there in the “online version “ or not on Mac?

Re: Where do I find the no tax on tips deduction?

AmyC — Wed, 25 Feb 2026 16:43:02 GMT

While the Mac should have the option, I believe you so let's go a different route. Switch over to Forms mode and find form 4137 to enter the data directly. Then go back to step by step and go through the w2 again. This should get your program to sync up and allow any deductions for which you qualify.

@rsutherl