TY 2026 W-2: IRS Proposes New Box 12 Codes, Box 14 Tweak

The IRS has issued a draft of the tax year 2026 Form W-2, incorporating the reporting requirements of the One Big Beautiful Bill Act (OBBBA).

It’s important to note: The IRS hasn’t finalized the changes yet, and they don’t apply to tax year 2025 forms.

With that said, here’s a look at the TY 2026 W-2 as it now stands.

Compensation in Box 12

The OBBBA, which became law in July 2025, requires employers to provide details about certain compensation employees receive.

Specifically, the federal tax law includes the “no tax on overtime” and “no tax on tips” provisions. That’s good news for employees who will be able to claim above-the-line deductions on their personal income tax returns.

But before they can claim that deduction, they need to know exactly how much qualified overtime and tips compensation they earned.

That’s where box 12 of Form W-2 comes in.

The early release draft version of the 2026 form, which the IRS posted on its website on August 15, 2025, lists some new codes to use in box 12 related to the provisions noted above. They are: TP and TT.

Here’s what those box 12 codes stand for:

• TP – total amount of qualified tips, and
• TT – total amount of qualified overtime compensation.

Note: The IRS has also proposed adding another code for use in box 12 – TA. Employers would use that code to indicate how much they’ve contributed to an employee’s Trump account.

Occupation in Box 14

When it comes to tips, only employees in eligible occupations will be able to claim the income tax deduction.

To provide employers with a place to report tipped employees’ occupations, as required by the new federal tax law, the IRS modified box 14 in the early release draft of the 2026 W-2.

Currently, box 14 is called Other. That box would be divided and would become:

• Box 14a, Other, and
• Box 14b, Treasury/tipped occupation code.

IRS Revises Form W-2c

The IRS also issued a draft revision of the form employers use to correct errors on Forms W-2 already filed with SSA.

The revision date on the early release draft of Form W-2c is January 2026. As one might expect, the changes to box 14 on Form W-2 carry over to Form W-2c.

But of course, as with the 2026 W-2 itself, nothing is set in stone yet.