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There seems to be some confusion about codes TP and TT for W-2 box 12. They are in the IRS instructions for Form W-2 for 2026, but not for 2025. However, some employers evidently are using them on 2025 W-2s. They are not in the dropdown list in TurboTax because they are not supposed to be used on a W-2 for 2025.
What I think you should do is not enter them in your W-2. Code TT is qualified overtime. You can use the amount to enter your overtime in the appropriate place in TurboTax. After you enter your W-2 you will come to a screen that says "Let's check for uncommon situations." On that screen, check the box for Overtime. TurboTax will then prompt you to enter the information needed to claim the deduction for overtime.
Code TP is tips. Your total tips should be included in the total wages in box 1 of your W-2, and the amount of tips should be shown in box 7 of your W-2. If the tips are in box 7, you can just ignore the code TP in box 12. After you enter the W-2, with the tips in box 7, TurboTax will ask some questions to determine if you are eligible for the deduction for tips.
If the tips are not in box 7 it gets more complicated. You should first ask your employer for a corrected W-2, showing the tips in box 7. If the employer refuses to correct the W-2, post back here and tell us:
Codes TP and TT for W-2 box 12 are for tips and overtime, and appear in the IRS instructions for Form W-2 for 2026, but not for 2025. Since your employer used codes that are not available for 2025, you can simply skip entering those two codes in your W-2.
Instead, enter the information for Tips and Overtime where prompted in the follow-up screens that appear after you finish entering the W-2. If tips are already reported in Box 7, the follow-up screens will ask questions to determine whether you qualify for the deduction for tips.
If you have other box 12 capital letter codes and amounts, select + Add another box 12 item to enter all of the ones on your W-2" if needed.
Check with your employer if you are not sure of the amounts to report for tips and overtime.
[Edited 02/01/26| 3:35pm PST]
@v-rose021724: (edited)
There seems to be some confusion about codes TP and TT for W-2 box 12. They are in the IRS instructions for Form W-2 for 2026, but not for 2025. However, some employers evidently are using them on 2025 W-2s. They are not in the dropdown list in TurboTax because they are not supposed to be used on a W-2 for 2025.
What I think you should do is not enter them in your W-2. Code TT is qualified overtime. You can use the amount to enter your overtime in the appropriate place in TurboTax. After you enter your W-2 you will come to a screen that says "Let's check for uncommon situations." On that screen, check the box for Overtime. TurboTax will then prompt you to enter the information needed to claim the deduction for overtime.
Code TP is tips. Your total tips should be included in the total wages in box 1 of your W-2, and the amount of tips should be shown in box 7 of your W-2. If the tips are in box 7, you can just ignore the code TP in box 12. After you enter the W-2, with the tips in box 7, TurboTax will ask some questions to determine if you are eligible for the deduction for tips.
If the tips are not in box 7 it gets more complicated. You should first ask your employer for a corrected W-2, showing the tips in box 7. If the employer refuses to correct the W-2, post back here and tell us:
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