TY 2026 W-2: IRS Finalizes New Box 12 Codes, Box 14 Tweak

The IRS has finalized the tax year 2026 Form W-2, solidifying more of the reporting requirements established by federal legislation passed last year.

Plus, the final version of General Instructions for Forms W-2 and W-3 was released shortly after the form.

So now, Payroll pros have answers to questions they’ve been asking since the One Big Beautiful Bill Act’s (OBBBA’s) mid-2025 passage. Here’s a recap.

Box 12 Changes

Three new codes have been added to the list of box 12 codes:

• TA – employer contributions paid to a Trump account of an employee, or his or her dependent, under an Internal Revenue Code Sec. 128 program
• TP – total amount of cash tips reported to the employer, and
• TT – total amount of qualified overtime compensation (reminder: that’s the “and-a-half” portion of time-and-a-half compensation paid to an individual as required by the Fair Labor Standards Act).

Box 14 Changes

You’ll notice that box 14 on the 2026 Form W-2 looks different than it does on the 2025 version of the form. That box has been split into:

• Box 14a – Other, and
• Box 14b – Treasury Tipped Occupation Code(s).

You’d use box 14a to report a range of information such as disability insurance taxes withheld; union dues; uniform payments; health insurance premiums deducted; nontaxable income; educational assistance payments; or a member of the clergy’s parsonage allowance and utilities. Also, railroad employers would use this box to report required information that’s specific to that industry.

As for box 14b, you’d use this if you reported cash tips in box 12. Into 14b, you’d enter the occupation code as established by the OBBBA. If an employee received tips in multiple occupations, you’d input up to two codes. If an employee received tips in a nonqualifying occupation, you’d input “000” for that occupation.

In light of the changes to box 14, you may be doubtful that you’ll have enough room to enter all the specified information. But the IRS reduced the size of box 9 to accommodate the box 14 expansion.

IRS Revises Form W-2c

The IRS also issued the revision of the form employers use to correct errors on Forms W-2 already filed with SSA.

The revision date on the final version of Form W-2c is January 2026. As one might expect, the changes to box 14 on Form W-2 carry over to Form W-2c.