---
title: "W-2 Box 12 Code TP Explained"
description: "On 2026 Forms W-2, box 12 code TP shows the total cash tips you reported to your employer. It helps you figure qualified tips on Schedule 1-A Part II."
url: https://www.tipmaxapp.com/us/answers/w2-box-12-code-tp-explained
language: en
publisher: TipMax (Entermaurs Incorporated)
date_published: 2026-09-23
last_verified: 2026-09-23
---

# What is W-2 box 12 code TP for tips?

**Short answer:** On **2026** Forms W-2, employers report **total cash tips you reported to the employer** in box 12 using code **TP**. That figure helps you figure qualified tips for the federal tip deduction on **Schedule 1-A Part II**. **2025** W-2s didn’t use this code; Notice 2025-69 covered transition methods. Code TP isn’t the deduction itself, doesn’t waive FICA, and doesn’t make every dollar automatically “qualified” (occupation, voluntariness, and other rules still apply).

## Example math

W-2 box 12 code **TP** shows **$14,000**. You also have **$1,000** of tips you will report on Form 4137.

1. Employer-reported cash tips (TP): **$14,000**.
2. Additional Form 4137 tips (if filed): **$1,000**.
3. Rough qualified tips before cap and phase-out ≈ **$15,000**, if the other §224 rules are met.
4. Illustrative savings: enter your own marginal rate in the calculator.

**Not tax advice.** Compare TP to your tip log, and ask payroll if it looks wrong.

## Plain English

### Why TP exists

IRS tip guidance and the 2026 General Instructions for Forms W-2 and W-3 describe box 12 code **TP** for cash tips reported to the employer. Use it with box **14b** ([Treasury Tipped Occupation Code](https://www.tipmaxapp.com/us/answers/treasury-tipped-occupation-code-w2)) when working through Schedule 1-A Part II.

### What TP is not

- Not a refund code.
- Not proof that an auto-gratuity was reclassified as tips. See [Does an auto-gratuity count as a tip?](https://www.tipmaxapp.com/us/answers/qualified-tips-vs-service-charges)
- Not a 2025 box (the transition year used other methods under Notice 2025-69).

## Common mistakes

- Ignoring TP and retyping a guessed tip total into software.
- Assuming TP includes tip-outs you already passed on. It should generally reflect tips you reported as yours, but payroll systems differ, so reconcile it to your log.
- Skipping the box **14b** occupation codes.

## Official sources

- [IRS: Tip recordkeeping and reporting](https://www.irs.gov/businesses/small-businesses-self-employed/tip-recordkeeping-and-reporting)
- [IRS: 2026 General Instructions for Forms W-2 and W-3](https://www.irs.gov/instructions/iw2w3)
- [IRS: Notice 2025-69](https://www.irs.gov/pub/irs-drop/n-25-69.pdf)
- [Schedule 1-A (Form 1040)](https://www.irs.gov/pub/irs-pdf/f1040s1a.pdf)

## Last verified

September 23, 2026. Sources checked: IRS tip recordkeeping page, 2026 General Instructions for Forms W-2 and W-3, Notice 2025-69, and Schedule 1-A. Confirmed: employers report cash tips reported to them in W-2 box 12 code TP starting with 2026 Forms W-2.

## Related

- [Treasury Tipped Occupation Code on your W-2](https://www.tipmaxapp.com/us/answers/treasury-tipped-occupation-code-w2)
- [How to claim on Schedule 1-A](https://www.tipmaxapp.com/us/answers/how-to-claim-schedule-1a)
- [Form 4137 and unreported tips](https://www.tipmaxapp.com/us/answers/form-4137-unreported-tips-and-deduction)
- [Multiple jobs](https://www.tipmaxapp.com/us/answers/no-tax-on-tips-multiple-jobs)

## How TipMax helps with this

Check your W-2 against your own log.

TipMax is an iPhone app for servers and bartenders that tracks tips and tip-outs and turns a restaurant menu into study flashcards.

- Log cash and card tips per shift in seconds.
- Weekly, monthly, and pay-period totals.

Download TipMax free: https://apps.apple.com/us/app/tipmax-study-track-earn/id6744850146

---

TipMax Answers explains public IRS guidance in plain English for tipped workers. It is **not tax, legal, or accounting advice**. Rules can change. Confirm figures on IRS.gov and with a qualified tax professional before you file. TipMax the app helps you track tips and true hourly pay; it does not file your taxes. TipMax helps you reconcile tip logs to year-end totals; it does not issue W-2s.