Schedule1ADesk / 2026 Tax & Payroll Guides / TTOC 104: Barista & Coffee Counter Server 2026 "No Tax on Tips" Eligibility & Schedule 1-A Calculator
TTOC 104: Barista & Coffee Counter Server 2026 "No Tax on Tips" Eligibility & Schedule 1-A Calculator
Does a Barista & Coffee Counter Server qualify for the 2026 No Tax on Tips deduction?
Yes. Under IRS final regulations (TD 10044), Barista & Coffee Counter Server is an officially recognized tipped occupation assigned Treasury Tipped Occupation Code TTOC 104 (Beverage & Food Service (100s)). Eligible workers can deduct up to $25,000 of voluntary cash, card, and tip-pool tips on 2026 IRS Schedule 1-A, Part II.
Under the One Big Beautiful Bill Act (Public Law 119-21) and IRS final regulations TD 10044, workers in customary tipped occupations can claim an above-the-line federal income tax deduction of up to $25,000 per year on IRS Schedule 1-A (Form 1040), Part II. Your employer reports your qualifying voluntary tips in Form W-2 Box 12, Code TP and enters TTOC 104 in Box 14b.
Open Pre-Filled TTOC 104 (Barista & Coffee Counter Server) Schedule 1-A Calculator
2026 IRS Schedule 1-A Specification Matrix for Barista & Coffee Counter Server (TTOC 104)
| IRS Reporting Rule | Official 2026 Requirement for Barista & Coffee Counter Server |
|---|---|
| Treasury Tipped Occupation Code (Box 14b) | TTOC 104 (Beverage & Food Service (100s)) |
| W-2 Tip Reporting Box | Form W-2, Box 12, Code TP |
| Tax Return Schedule | 2026 IRS Schedule 1-A (Form 1040), Part II (Lines 4 to 7) |
| Maximum Annual Tip Deduction | $25,000 (Applies to Single, Head of Household, and Married Filing Jointly) |
| MAGI Phase-Out Threshold | $150,000 Single / $300,000 Married Filing Jointly ($100 reduction per $1,000 over) |
| Qualifying Tip Examples | Counter POS tablet tips and cash tip jars |
| Disqualified Amounts | Mandatory service charges, auto-gratuities (e.g. 18% large-party fees), and base hourly wages |
| FICA Payroll Tax Rule | 6.2% Social Security & 1.45% Medicare still apply to 100% of reported tips |
Worked 2026 Tax Savings Example for a Barista & Coffee Counter Server
If a Barista & Coffee Counter Server earns $8,400 in voluntary cash and credit card tips during 2026 (reported in W-2 Box 12 Code TP with Box 14b code TTOC 104) and has a Modified AGI under $150,000 ($300,000 MFJ), the full $8,400 is deductible on Schedule 1-A, Part II. In the 22% federal bracket, this reduces 2026 federal income tax by approximately $1,848.
Frequently Asked Questions
What is the 3-digit TTOC code for a Barista & Coffee Counter Server on a 2026 W-2?
The official Treasury Tipped Occupation Code for a Barista & Coffee Counter Server is TTOC 104 (Beverage & Food Service (100s)), which employers enter in Box 14b alongside Box 12 Code TP.
Do mandatory auto-gratuities count for a Barista & Coffee Counter Server under TTOC 104?
No. Under IRS TD 10044, mandatory service charges or automatic gratuities added by the business without customer discretion are treated as regular non-tip wages and must be excluded from Schedule 1-A Part II.