From the W-2s issued in January 2027 (for tax year 2026), three entries appear that were not there before. Each feeds a specific part of Schedule 1-A.
Box 12, code TT: qualified overtime compensation
This is the total qualified overtime premium your employer calculated for you: FLSA overtime hours times one half of your FLSA regular rate. It is the starting figure for Schedule 1-A Part III, before the $12,500 cap and the phase-out. It is deliberately not your total overtime pay; if it looks like about a third of your overtime total at time and a half, it is probably right. The reconciliation tool checks it against your own figure.
Box 12, code TP: qualified tips
This is the total of your cash tips, including tips the employer knows about from your reports, for employees in listed tipped occupations. It feeds Schedule 1-A Part II, subject to the $25,000 per-return cap.
Box 14b: Treasury Tipped Occupation Code
A three-digit code (for example 101 for bartenders) identifying your tipped occupation from the IRS list. It is how the IRS matches your tips deduction to a listed occupation. The full set of codes is on the occupations list.
The rare 1099 versions
Qualified overtime and tips are occasionally reported outside a W-2: 1099-NEC box 1d for overtime and box 1c for tips paid to a nonemployee, and 1099-MISC box 14 for overtime and box 13 for tips. Most employees will only ever see the W-2 codes; the 1099 boxes exist for the uncommon cases where the payer is not an employer.