Schedule1ADesk / 2026 Tax & Payroll Guides / TTOC 113: Hotel Room Service Waiter 2026 "No Tax on Tips" Eligibility & Schedule 1-A Calculator
TTOC 113: Hotel Room Service Waiter 2026 "No Tax on Tips" Eligibility & Schedule 1-A Calculator
Does a Hotel Room Service Waiter qualify for the 2026 No Tax on Tips deduction?
Yes. Under IRS final regulations (TD 10044), Hotel Room Service Waiter is an officially recognized tipped occupation assigned Treasury Tipped Occupation Code TTOC 113 (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 113 in Box 14b.
Open Pre-Filled TTOC 113 (Hotel Room Service Waiter) Schedule 1-A Calculator
2026 IRS Schedule 1-A Specification Matrix for Hotel Room Service Waiter (TTOC 113)
| IRS Reporting Rule | Official 2026 Requirement for Hotel Room Service Waiter |
|---|---|
| Treasury Tipped Occupation Code (Box 14b) | TTOC 113 (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 | Voluntary in-room dining tips (excluding mandatory delivery fees) |
| 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 Hotel Room Service Waiter
If a Hotel Room Service Waiter earns $15,200 in voluntary cash and credit card tips during 2026 (reported in W-2 Box 12 Code TP with Box 14b code TTOC 113) and has a Modified AGI under $150,000 ($300,000 MFJ), the full $15,200 is deductible on Schedule 1-A, Part II. In the 22% federal bracket, this reduces 2026 federal income tax by approximately $3,344.
Frequently Asked Questions
What is the 3-digit TTOC code for a Hotel Room Service Waiter on a 2026 W-2?
The official Treasury Tipped Occupation Code for a Hotel Room Service Waiter is TTOC 113 (Beverage & Food Service (100s)), which employers enter in Box 14b alongside Box 12 Code TP.
Do mandatory auto-gratuities count for a Hotel Room Service Waiter under TTOC 113?
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.