W-2 Box 12 Code TT / TP Checker
Enter what your W-2 shows and what your own records say. Get a plain-English verdict — Correct, Plausible, Wrong, or Missing — plus the W-2c request letter if something needs fixing.
Your W-2 has new codes this year. Check them before you file.
Starting with tax year 2026, your employer must report qualified overtime in Box 12, code TT and qualified tips in Box 12, code TP, and for 2026 and later, you can only deduct what is reported. If the code or the amount is wrong, the only fix is a corrected Form W-2c. Our checker tells you in under a minute whether your W-2 is right, and exactly what to do if it isn't.
Rules verified against IRS sources — last verified October 26, 2026
Quick answer: what is Schedule 1-A?
Schedule 1-A (Form 1040) is the IRS form for the One Big Beautiful Bill Act deductions for qualified tips, qualified overtime compensation, qualified passenger vehicle loan interest and the senior deduction, for tax years 2025–2028. The total on line 38 goes to Form 1040, line 13b. From 2026, qualified overtime is reported on Form W-2 in Box 12 with code TT, and qualified tips with code TP.
Check W-2 codes Tips calculator Overtime calculator State rules Tax glossary
The tools
No Tax on Overtime Calculator
Only the FLSA-required “half” of time-and-a-half counts. This calculator works it out from your hours and rate — or from the code TT amount on your W-2 — with the $12,500 / $25,000 cap and the income phase-out applied.
No Tax on Tips Calculator
Deduct up to $25,000 of qualified tips. Pick your occupation from the IRS Treasury Tipped Occupation Code list, enter your reported tips, and see your deduction after the cap and phase-out.
Schedule 1-A Helper
All four deductions — tips, overtime, car loan interest, and the senior deduction — worked line by line, ending at line 38, the total that carries to your Form 1040, line 13b.
What changed — and why it matters
August 6, 2026: the IRS issued Fact Sheet FS-2026-13, confirming that separate reporting of qualified overtime (Box 12, code TT) is mandatory for tax year 2026, with no transition relief after 2025. The same reporting regime covers qualified tips (Box 12, code TP, with your occupation code in box 14b). Three rules from that fact sheet drive everything on this site:
- The reported amount is the ceiling. For 2026 and later, you may not deduct more than the amount reported on your W-2 (FS-2026-13, Q20).
- The only fix is a Form W-2c. If the amount is omitted or understated, you must ask your employer for a corrected W-2c — even perfect pay stubs cannot substitute (FS-2026-13, Q22).
- Form 4852 does not work. A substitute W-2 cannot be used to establish or increase these deductions (FS-2026-13, Q23).
Common traps, answered from the IRS text
“My code says PP — is that overtime?”
No. The qualified overtime code is TT. A code that isn't TT (for overtime) or TP (for tips) means the amount is not reported the way the law requires. Run the checker to get the fix.
“My holiday pay is time-and-a-half. Does it count?”
Only the premium the FLSA requires counts. Holiday and weekend premiums your employer pays by policy or union contract — beyond the FLSA minimum — are not qualified overtime (FS-2026-13, Q16).
“My employer paid double time. Can I deduct the full premium?”
No. Even at double time, only the “half” portion the FLSA requires is qualified. The IRS's own example: at $20/hour with 10 overtime hours paid at double time, the qualified amount is $100, not $200 (FS-2026-13, Q16).
“My W-2 is wrong. Can I just use my pay stubs?”
For 2025, yes — that was the transition year. For 2026 and later, no: the deduction is limited to the reported amount, and the only correction is a Form W-2c from your employer (FS-2026-13, Q20–Q23).
Estimates only — not tax advice. These tools use the IRS rules cited on each page and your own inputs. They do not consider your full tax situation. Verify important figures against the IRS source or a qualified tax professional before filing.
Browse all 71 tipped occupations on the IRS list: find your occupation code, your W-2 reporting rule, and the limits that apply to you.
Glossary of tax terms — every term behind these deductions (MAGI, qualified tips, codes TT and TP, W-2c, and more) defined in plain English, each with its IRS source.
Does your state follow the federal deductions? — state-by-state conformity for tips and overtime, verified from each state’s own guidance. Most states do not conform.