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Do My Tips Qualify?

Check the basic payment, occupation and reporting conditions for a possible qualified-tip deduction.

Answer five questions about a payment and its recipient. This preliminary screen does not determine the employee’s final tax deduction.

Check the basics of a tip payment

Answer five questions about a payment and its recipient. This screen helps separate voluntary monetary tips from service charges; it does not determine an employee’s final tax deduction.

A payment can be reportable on a W-2 even when it does not qualify for an individual deduction. In 2026, use code TP for total cash tips reported to the employer.

Educational federal reporting guidance, reviewed October 8, 2026. Sources: 2026 IRS W-2 instructions, Notice 2025-69, and DOL tip rules.

Keep tip records organized

Explore TipFort for recording tips and service charges. Reconcile required W-2 fields with your payroll provider before filing.

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