Beginning in the 2026 tax year there is a deduction on tips received (up to a certain amount.) and overtime.
To read about these changes on the IRS side, please visit: https://www.irs.gov/newsroom/treasury-irs-provide-guidance-for-individuals-who-received-tips-or-overtime-during-tax-year-2025
To report this in the UltimateTax software, add a W2 - Wage and Tax Statement form and scroll to the bottom to the Instructions for W-2 section. Under this section look to the second and third lines to report qualified tips and overtime.
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