Tips deduction

Gatto0811 · ‎February 10, 2026

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.

JamesG1

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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Gatto0811

Thank you, but this doesn't really answer my question. I also have some OT to deduct, and your reply fits perfectly for that, but tips are not addressed. My issue is that my tip income is nearly 2 1/2 times that of my hourly wages, and to add tips into the OT would create obvious problems. The on-line version allows for separate reporting of tips---I am looking for the same approach in the desktop version