The IRS released draft versions of the 2026 Form W-2, Wage and Tax Statement, and the 2026 Form W-2c, Corrected Wage and Tax Statement.
Both forms caution that early release drafts are provided for information only. Draft forms should not be filed.
Changes Made Due to the OBBBA
The draft 2026 Form W-2 contains changes due to the One Big Beautiful Bill Act (OBBBA), including:
New Box 12 codes. Box 12 has three new codes: TA – Employer contributions to a Trump account; TP – Total amount of qualified tips; and TT – Total amount of qualified overtime compensation.
Tip reporting. Box 14 is now 14a – Other and 14b – Treasury tipped occupation code. Employers may use Box 14a to report information such as state disability insurance taxes withheld, union dues, uniform payments, health insurance premiums deducted, nontaxable income, or educational assistance payments.
Employers may use Box 14b to report the treasury occupation code for an employee’s tipped occupation, which is used to report an employee’s qualified tips as required by the OBBBA. The same Box 14 changes were included in the draft 2026 Form W-2c.
These changes were made only to the draft 2026 version. The IRS has said that Form W-2 will remain unchanged for tax year 2025.
OBBBA Webinar
The OBBBA contains many provisions that will affect payroll for years to come. Many questions remain on how to handle provisions from the bill.
Register for PayrollOrg’s “Key OBBBA Payroll Impacts for 2025 and Beyond” on-demand webinar to learn how OBBBA provisions will impact payroll. The on-demand webinar includes a handout that provides answers to attendees’ most asked questions asked during the live webinar on August 14.
To learn more about federal and state laws, regulations, and information to keep your company's payroll operations in compliance, check out Payroll Source Plus!
Rayna Alexander, Esq., is Editor of Payroll Information Resources for PayrollOrg.
