Tip Deduction

iloisiakissoja — Fri, 23 Jan 2026 15:39:16 GMT

I am an employee and I received tips throughout 2025, but on my W-2 , they are lumped into my wages. I have YTD statements from work that show the divisions between hourly, commission and tip income, but it's not shown on the W-2 itself. Can I still claim my tips as a deduction without them being in Box 7?

Re: Tip Deduction

JamesG1 — Mon, 26 Jan 2026 02:56:59 GMT

Unfortunately, you may not. Tips reported in box 7 or box 8 tells the IRS that the proper Social Security and Medicare taxes have been computed and reported in your behalf by your employer.

Ask your employer for a corrected W-2 (Form W-2C) that correctly reports your tip income and the Social Security and Medicare taxes that are paid in your behalf.

In TurboTax Online, within the W-2 entry screens, at the screen Let's check for other situations, you are allowed to report Tips not reported on my W-2.

See also the TurboTax Help How do I enter unreported tips?

[Edited 01/25/2026 | 6:55 PM PST]

@iloisiakissoja

Please see TurboTax Help that directly addresses your concerns here.

topic Tip Deduction in Deductions & credits

Tip Deduction

Re: Tip Deduction