Tips and Overtime: A Deeper Dive | Product

The IRS has given us revised versions of 1099-NEC and 1099-MISC for 2026. The revisions contain new boxes for reporting of tips and overtime. These items relate to the One Big Beautiful Bill (OBBBA), which created a deduction on personal tax returns for certain types of overtime and tips. Employers are required to track qualifying overtime and tips, and report those items on a reporting form. Most of the time, this will be a W-2. But the boxes are on 1099s as well — why? We will answer that in this session.

Agenda and learning objectives:

• Understand the new OBBBA deduction for tips and overtime
• Identify when you’d report overtime on a 1099
• Identify when you do (or don’t) report tips on a 1099
• Understand compliance implications