W-2 Box 8 Allocated Tips vs Box 12 Code TP

On 2026 Forms W-2 (W-2/W-3 instructions):

• Box 8, allocated tips: the amount you allocated under the Form 8027 rules. It isn't wages in boxes 1, 3, 5 or 7, and no tax is withheld on it.
• Boxes 1, 5 and 7: tips the employee actually reported to you.
• Box 12 code TP: new for 2026 — the cash tips reported to the employer (cash, charged and tip-sharing), for the qualified tips deduction.
• Box 14b: the employee's Treasury Tipped Occupation Code(s).

Allotip gives you box 8 per employee and each employee's reported tips total; confirm the code TP amount and occupation codes in your payroll system.

Last reviewed 2026-10-28. General information, not tax advice. Your tax adviser can tell you what applies to you.