service charge/gratuity and option for marking it of as not tips

[Laffusrcu]

Hi ,

Hi , as banquet server 

when asked what position worked i mark (food and beverages industry) section and as server non restaurant 

and automatically thinks its tips deductible and there is no portion saying its auto gratuity/service charge cause im in that industry unless i remove my job description.  

they should have leave option is this service charge/gratuity or tips what the best option to do 

leave my job description out industry out 

[JohnB5677 · Accepted solution]

I would think you fall under Beverage and Food Service

Treasury Tipped Occupation Code provides a three-digit code and descriptions for the occupations listed within the proposed regulations. The proposed regulations group the occupations into eight categories:

• 100s – Beverage and Food Service
• 200s – Entertainment and Events
• 300s – Hospitality and Guest Services
• 400s – Home Services
• 500s – Personal Services
• 600s – Personal Appearance and Wellness
• 700s – Recreation and Instruction
• 800s – Transportation and Delivery

The issue is:  

• Did you get tips, or did you not?
• If you did receive tips, they are deductible regardless of the industry.

Treasury, IRS issue guidance listing occupations

@Laffusrcu, I changed my statement about the coding of the jod.

[Edited 02/02/2026: 11:49 AM PST]

[AmeliesUncle]

Are you saying that Box 7 of your W-2 includes the service charges?  If so, your employer is doing it incorrectly (Box 7 should only include voluntary tips).

EDIT:  I just saw another post that a new TurboTax update asks if you need to adjust that amount.  Have you looked for option?

[Laffusrcu]

Sorry for delay 

idk what’s happening with box 7 

I work at 4 hotels / food and beverage department

one fulltime , 3 partime and they all reported expect one hotel a partial amount of income from box 1 in box 7 on W 2 and one employer can be wrong but 3 I start to ask questions but HR is clueless and my turbo tax sees this as tip cause it’s marked on W2 as social security tips and refund goes up .

Why would 3 employers mark box 7 and enter social security tips ??? And where did they come with the that specific amount .

[KrisD15]

Please see the answer posted to your duplicate question. 

https://ttlc.intuit.com/community/tax-credits-deductions/discussion/re-why-can-t-i-deduct-on-my-tips...