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posted Jan 23, 2026 7:39:16 AM

Tip Deduction

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?

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1 Replies
Employee Tax Expert
Jan 25, 2026 4:25:06 PM

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.