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Where does my federal deduction for server tips appear in my return? I live in IL so won't receive a state deduction. Tip income appears in both box 1 and 14 of my W2.

I'm concerned that tip income is being doubled by appearing as part of my total compensation in Box 1 (wages + tips) and then tip income only is listed in box 14 of my W2.
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1 Reply
JamesG1
Employee Tax Expert

Where does my federal deduction for server tips appear in my return? I live in IL so won't receive a state deduction. Tip income appears in both box 1 and 14 of my W2.

Tip income must be reported as income in box 1 of the W-2 so that the qualified tip deduction may be taken.

 

Currently, employers are not required to list tips separately on your W-2. If your employer did not report your tips in Box 7 (Social Security tips) of your W-2, you may still be able to claim the tips deduction.  Follow the steps below based on your situation to claim the deduction. 

 

Some employers may report qualified tips in Box 14 instead of Box 7.

 

  1. Enter your W-2, including exactly what appears in Box 14.
  2. After entering your W-2, look for the Review and complete your box 14 info screen.
  3. For the line with tips, select Reported tips (not railroad tips) from the list.
  4. TurboTax will ask you a few questions about your tips, and automatically calculate the deduction if you qualify.

See also this TurboTax Help.

 

 

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