As a reminder for all employers, the IRS has confirmed that Form W-2 will remain unchanged for tax year 2025, and no updates will be made to related forms or federal withholding tables under the One Big Beautiful Bill Act (OBBBA). Employers should continue using current procedures for reporting and withholding to avoid disruptions during the upcoming tax season.
The IRS has also released a draft of the 2026 Form W-2, which includes several proposed changes to support phased implementation of the OBBBA:
- Box 12 will feature new codes:
- TP – Total amount of qualified tips.
- TT – Total amount of qualified overtime compensation.
- TA – Employer contributions to a Trump account.
- Box 14 is now split into:
- 14a – Other (e.g., union dues, disability insurance, health premiums).
- 14b – Treasury tipped occupation code (used to identify qualifying tipped occupations).
These updates are part of an early release draft, and additional revisions may occur before finalization. The IRS is working closely with employers, payroll providers, and tax professionals to ensure a smooth transition for tax year 2026.
For additional information:
- IRS Press Release – August 7, 2025
- IRS Draft Forms – W-2, W-2C and More
- IRS – General Instructions for Forms W-2 and W-3 (2025)
- IRS – About Form W-2, Wage and Tax Statement
- IRS – Forms, instructions & publications
- IRS – About Form W-2 C, Corrected Wage and Tax Statements
- IRS – Form W-2C Draft
- IRS – Form W-2 Draft
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