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Code TP and box 14b: reporting tips and Treasury Tipped Occupation Codes

Last reviewed October 6, 2026, against FS-2026-13 (August 2026) and the 2026 W-2/W-3 instructions.

For 2026, Form W-2 has two new tip items: box 12 code TP for the total cash tips reported to the employer, and box 14b for the employee's Treasury Tipped Occupation Code(s).

General information, not tax or legal advice. The employer remains responsible for its Forms W-2. IRS FAQs are not binding law. Check your facts with a CPA or your payroll provider. Halfmark is not affiliated with the IRS.

Code TP

“Report the total amount of cash tips reported to the employer.” When code TP is reported, an occupation code must also be listed in box 14b (2026 General Instructions for Forms W-2 and W-3, box 12 code TP). Cash tips include tips paid in cash or by check, credit card, debit card or gift card, and tips received through tip-sharing arrangements, mandatory or voluntary (26 CFR 1.224-1(c)(2), T.D. 10044). They do not include:

• mandatory service charges and automatic gratuities added to the bill (26 CFR 1.224-1(c)(4); 29 CFR 531.55);
• items paid in a non-cash medium (event tickets, goods) or digital assets (26 CFR 1.224-1(c)(2));
• allocated tips, which go in box 8 (2026 General Instructions for Forms W-2 and W-3).

Code TP is the reported total. It is not the employee's deduction amount: whether tips are qualified also depends on the occupation, whether the business is a specified service trade or business (SSTB), and the employee's return (T.D. 10044).

Box 14b

“Enter up to two code(s) based on the occupation(s) that the tips were received in. If tips were received in more than two occupations, include the Treasury Tipped Occupation Code for any two of the three or more occupations in which tips were received. If any tips were received in a nonqualifying occupation, then ‘000’ must be input as one of the occupation code(s)” (2026 General Instructions for Forms W-2 and W-3, box 14b).

Example

An employee received $9,000 in tips as a server (102), $2,500 as a bartender (101) and $400 in a job not on the list. Code TP is $11,900 (all three). Box 14b must include 000; the second code can be either 102 or 101. Halfmark suggests 000 and 102 (largest amount first) and flags provider entries that miss 000.

SSTB employers

Tips received in the course of a specified service trade or business are not qualified tips (T.D. 10044). The 2026 W-2/W-3 instructions don't describe a separate SSTB indicator on Form W-2, so Halfmark doesn't invent one: if you mark the employer as an SSTB, tips are flagged for review with your provider or CPA.

Treasury Tipped Occupation Codes (71)

From the IRS Treasury Tipped Occupation Codes list (page last reviewed 2026-06-28; copied 2026-10-06). Check the IRS page for changes. Use 000 for tips received in an occupation not on this list.

Sources

• 2026 General Instructions for Forms W-2 and W-3, box 12 code TP; box 14b; What's New
• T.D. 10044, 91 FR 19026 (April 13, 2026), 26 CFR 1.224-1(c)
• IRS Treasury Tipped Occupation Codes list
• 29 CFR 531.55