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Gatto0811
New Member

Tips deduction

When is TurboTax expected to release an update for the desktop version to allow for claiming the tax deduction for tips included in Box 1, but not identified in Boxes 7 or 14? I understand that a fix has been updated for the online version but not the desktop. 

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1 Reply
JamesG1
Employee Tax Expert

Tips deduction

TurboTax Desktop Deluxe will report the tip deduction for tip income included in box 1 of the W-2 but not reported in box 7 or box 14.  Follow these steps:

 

  • Enter the W-2.  
  • At the screen Let's check for other situations, select Overtime.  Click Continue.
  • You will be asked several questions about your tip income and your job description and duties.

The deduction you receive will phase out if your modified adjusted gross income (MAGI) is above:

 

  • $150,000 for Single, Head of Household and Qualifying Surviving Spouse filers
  • $300,000 for Married Filing Jointly filers

Married couples must file a joint return to claim this deduction. Married Filing Separately doesn’t qualify. 

 

See also this TurboTax Help


 

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