The IRS has issued early draft versions of the 2026 Form W-2, Wage and Tax Statement, and Form W-2c, Corrected Wage and Tax Statement. While these drafts offer a preview of potential changes, it's important to note they are for informational purposes only and should not be filed. 

Key Updates Driven by OBBBA

The draft 2026 Form W-2 reflects several changes prompted by the One Big Beautiful Bill Act (OBBBA), including:  

• Box 12 introduces three new codes:
  • TA for employer contributions to a Trump account.
  • TP for the total amount of qualified tips.
  • TT for the total amount of qualified overtime compensation.
• Box 14 has also been revised and split into two parts:
  • 14a labeled “Other,” which may be used to report items such as state disability insurance taxes withheld, union dues, uniform payments, health insurance premiums deducted, nontaxable income or educational assistance payments.
  • 14b designated for the Treasury tipped occupation code, which identifies an employee’s tipped occupation and supports compliance with the OBBBA’s tip reporting requirements. These same changes are mirrored in the draft 2026 Form W-2c.

These updates appear exclusively in the draft 2026 forms. While the IRS has indicated that the official Form W-2 will not be revised at this time, it has yet to clarify how employers should report overtime pay and tip income. Key figures employees will need to determine their federal income tax exclusion for the 2025 tax year.

How We Can Help

As regulatory guidance continues to evolve, it’s essential for employers to stay informed and prepared. Monitoring finalized IRS instructions and understanding how new reporting requirements may affect year-end processes will be key to maintaining compliance and avoiding costly errors. We simplify the complexities of W-2 and 1099 year-end reporting, so you can focus on your business, not your paperwork. Let us handle the details, so you stay ahead of the curve.