How do I enter tips in TurboTax online?
Tip income is typically, but not always, included as income on your W-2. Currently, employers aren't required to list tips separately on your W-2, but they are often reported in box 7 (Social Security tips). This article explains more about the new tax law on tip income.
See below for guidance on how to enter tips for your particular situation. After you finish entering your details, we’ll ask you a few questions about your tip income. Based on your answers, TurboTax will automatically determine if they qualify and calculate your deduction.
You imported or uploaded your W-2
Review the imported info to make sure any values in Box 7, Box 8, or Box 14 match your W-2.
If you have tips that were combined with your wages in Box 1, see below for how to handle this situation.
After confirming your W-2 is correct, look for the Let's check for other situations screen..
If it applies, select Tips not reported on my W-2 or Tips included in box 1 of my W-2, but not in boxes 7 or 14, and see the sections below for how to handle this situation
You typed in your W-2 information
Tips are listed in box 7 or box 8 of your W-2
Enter your W-2 information, including exactly what appears in Box 7 or Box 8.
You have amounts in Box 8 (Allocated tips)
If your employer reported tips in Box 8, they are considered allocated tips which haven't been taxed yet.
Enter your W-2, including exactly what appears in Box 8.
After you finish entering your W-2, we’ll ask you a few questions about these tips.
Based on your answers, TurboTax will automatically determine if they qualify and calculate your deduction.
You have tip amounts in Box 14
Some employers may report qualified tips in Box 14 (Other) instead of Box 7.
Enter your W-2, including exactly what appears in Box 14.
After entering your W-2, look for the Review and complete your box 14 info screen.
For the line with tips, select Reported tips (not railroad tips) from the list.
TurboTax will ask you a few questions about your tips, and automatically calculate the deduction if you qualify.
You have tips in Box 1 (with wages) but not listed in Box 7 or 14
In some cases, your employer may have included your tips in your total wages (Box 1) but didn’t separately list them into Box 7 or Box 14. You might have to independently determine your tips.
If you're manually breaking out tips from Box 1, make sure the amount you claim matches the tip reports (Form 4070 or similar form) you gave your employer during the year, or your own daily tip log. And of course, make sure you’re eligible for this deduction.
After entering your W-2, look for the Let's check for other situations screen.
Check the box next to Tips included in box 1 of my W-2, but not in boxes 7 or 14
TurboTax will ask you a few questions about your tips, and automatically calculate the deduction if you qualify.
You have tips you reported to your employer, but your employer didn't include them on your W-2
You'll have to ask them for a corrected W-2. This article has more info.
You have tips that were not reported to your employer
If you received cash or card tips that you didn't report to your employer (so they’re not on your W-2 at all), you’ll report them first to claim the deduction. You can learn more about this situation in this article.
After entering your W-2, look for the Let's check for other situations screen.
Check the box next to Tips not reported on my W-2.
We’ll guide you through reporting this income first.
Based on your answers, TurboTax will automatically determine if they qualify and calculate your deduction.
You have a 1099 for self-employment
If you’re self-employed, we’ll ask you questions about your tips when you enter your 1099 forms.
