What Does Box 12 Code TP Mean on a W-2?

New for 2026. Code TP appears for the first time on the W-2 you receive in January 2027, after the One Big Beautiful Bill Act changed employer reporting. If you have filed taxes for years and have never seen it, that is why.

Quick answer

Box 12 Code TP is cash tips you reported to your employer.

What Code TP means

The total cash tips you told your employer about during the year. It appears for employees in occupations Treasury has designated as tipped occupations.

Does Code TP affect my taxes?

This is the figure the no tax on tips deduction is built from. The tips are still in your box 1 wages. Code TP identifies how much of that pay was tips, so the deduction can be worked out on your return.

What to do about it

Check it against your own tip records. If the number looks wrong, ask your employer for a corrected W-2 before you file, because this one feeds a deduction.

Where to find Code TP on your W-2

Look at box 12, in the middle-right of the form. It has up to four lines, labelled 12a, 12b, 12c and 12d. Those letters are only line labels. The code you want is the small letter or pair of letters printed next to the amount, and it will read TP. If you have more than four entries, your employer issues a second W-2 to carry the rest.

Not the code you were looking for? The full box 12 code list covers every letter, and the W-2 box decoder explains every box on the form.

Frequently asked questions

Cash tips you reported to your employer. The total cash tips you told your employer about during the year. It appears for employees in occupations Treasury has designated as tipped occupations.