The third draft of the 2026 Form W-2, released Oct. 14 by the Internal Revenue Service, adds an additional Box 12 code for reporting tips that do not qualify for the deduction provided in the One Big Beautiful Bill Act.
New code TS was added to the list of Box 12 codes in the draft and is used to report tips when the employer is a “specified service trade or business” as defined in the act. These tips do not qualify for the act’s deduction.
For the definition of a specified service trade or business, the act refers to Internal ...
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