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. Do not add Box 7 and Box 14 together.
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.
Go to the Self-Employment topic under under Income in the Federal section
Answer Yes on the Did you have any self-employment income or expenses? screen.
If you land on the Your 2025 self-employed work summary page, select Review next to the work you're adding income for.
Answer the questions on the following screens until you arrive at Let's enter the income for your work.
Select the form that applies to your situation and select Continue.
You can enter the info from your 1099 form on the following screens.
On the screen titled Let’s check if you can deduct any tips, select Yes if you have tips that are included in box 1. Enter the amount of tips included as income on your 1099 and select Continue.
We’ll ask you a few questions about your tips, and automatically calculate the deduction amount if you qualify.
You have tips not on a 1099 for self-employment
You could have received tips not on a 1099-K, 1099-NEC, or 1099-MISC because:
You got a statement showing your tips, but not a 1099-K (common for Uber)
You earned less than the amounts required to issue you a 1099-K, 1099-NEC, or 1099-MISC.
The payer was supposed to give you a 1099 form, but didn’t.
The tips were part of income not reported on a 1099 form (like cash tips given to you directly).
Here's how to enter this in TurboTax Online:
Go to the Self-Employment topic under under Income in the Federal section
Answer Yes on the Did you have any self-employment income or expenses? screen.
If you land on the Your 2025 self-employed work summary page, select Review next to the work you're adding income for.
Answer the questions on the following screens until you arrive at Let's enter the income for your work.
Select Other self-employed income. Select the checkbox if you have tips to report.
Tips that qualify for the deduction are on a 1099 form and are included in the gross income box of the form. The forms don’t have a separate box just for tips.
Tips that aren’t included in the gross income box of a 1099 form are not currently eligible for the tips deduction. If your tips weren’t included on a 1099 form, then your tips aren’t deductible.
You can still report these tips on your tax return, even if they aren't eligible for the deduction right now. Their eligibility may change in the future. If it does, then your tips info will already be saved in TurboTax.
