Updated October 16, 2026. Quick answer: Boxes 1c and 1d of Form 1099-K exist on the December 2026 revision. Box 1c shows the total amount of cash tips reported by the filer, and box 1d shows up to two Treasury Tipped Occupation Codes. The form tells you to use both when determining the deduction for qualified tips in Part II of Schedule 1-A (Form 1040). The tip amount is already included in box 1a.
More IRS forms and schedules for individual filers, read line by line: Form 4137 instructions.
The employee copy of Form W-2, read box by box: W-2 box 14.
The employee copy of Form W-2, read box by box: W-2 box 7 and W-2 box 8.
What the two boxes report
The December 2026 recipient copy labels the new lines “Cash tips” and TTOC (the form’s abbreviation for Treasury Tipped Occupation Code). The payer instructions give the reason for them: “P.L. 119-21, section 70201, requires the reporting of cash tips.” “This new box was added to facilitate this reporting requirement for Form 1099-K.” “Use the Treasury Tipped Occupation Code(s) to identify the tipped occupation(s) for Form 1099-K.”
| Box on the December 2026 form | What it shows | What the form says to do with it |
|---|---|---|
| 1c Cash tips | “Shows the total amount of cash tips reported by the filer.” | “Use the amount in box 1c in determining the deduction for qualified tips in Part II of Schedule 1-A (Form 1040).” |
| 1d TTOC | “Shows up to two Treasury Tipped Occupation Code(s) (TTOC) for your tipped occupation(s).” | “Use this code(s) in determining the deduction for qualified tips in Part II of Schedule 1-A (Form 1040).” |
The same tip facts are printed on the other 1099 forms under different box numbers. The overview of all the 1099-K boxes is on the 1099-G and 1099-K boxes guide.
Box 1c is already inside box 1a
The tip amount is not extra income on top of the gross total. The form says ““Cash tips” include tips received in cash or charged.” and “This amount is also included in the amount reported in box 1a.” The payer instructions agree: “Enter in box 1c the total amount of cash tips included in box 1a.”
Here is an illustration, not an IRS example. If box 1a shows $20,000 and box 1c shows $3,000 then $20,000 minus $3,000 = $17,000 is the part of box 1a that is not cash tips. Box 1a is not $20,000 plus $3,000 = $23,000. Box 1c labels part of the box 1a total.
Box 1a itself is a gross figure; why it ignores fees and refunds is on the page for box 1a, and the threshold wording is on the 1099-K threshold page.
Box 1d and the 000 code
Box 1d holds a code and not a dollar amount. The payer instructions say “Enter up to two code(s) based on the occupation(s) that the tips were received in.” “If tips were received in more than two occupations, include the TTOC for any two of the three or more occupations in which tips were received.”
The code 000 has a special role. The payer instructions say “If any tips were received in a nonqualifying occupation, then “000” must be input as one of the occupation code(s).” and the recipient copy explains what it means for you: “If the occupation code 000 is used, and no other code is included in box 1d, your cash tips are not qualified tips; do not use the amount reported in box 1c for the deduction for qualified tips.”
The instructions send filers to an IRS page for the code list, saying the codes are “for the applicable code(s)”.
What the form says to do with the boxes
The form states one use for both: “Use the amount in box 1c in determining the deduction for qualified tips in Part II of Schedule 1-A (Form 1040).” “Use this code(s) in determining the deduction for qualified tips in Part II of Schedule 1-A (Form 1040).” Who qualifies is a Schedule 1-A question, so read that schedule’s own instructions; this page states only what the 1099-K form says.
For the income itself, the 1099-K says “See the separate instructions for your income tax return for using the information reported on this form.” For self-employed readers, business income is walked through on the Schedule C page, the tax on it is explained on the self-employment tax page, and a first-year estimated payment walk-through is on the first-year estimated taxes page.
Edition and box numbers
The primary read for this page is the December 2026 revision of Form 1099-K (Copy B, the recipient copy) and the December 2026 Instructions for Form 1099-K, which are the revisions for tax year 2026. Boxes 1c and 1d did not exist in the March 2024 revision: its instructions run from “Box 1b. Card Not Present Transactions” to “Box 2. Merchant Category Code”. On the December 2026 form they are new boxes between box 1b and box 2, so a payer using the older form cannot show a tip amount or an occupation code in them. The IRS site was serving the December 2026 revision on 2026-10-16, and the March 2024 revision of the instructions is the previous one. Check the revision printed on the form you received, because the boxes and the payer rules differ between revisions.
Common mistakes
- Adding box 1c to box 1a. The form says “This amount is also included in the amount reported in box 1a.”, so the tip amount is already inside the total.
- Using the box 1c amount for the deduction when box 1d shows only 000. The form says “your cash tips are not qualified tips” in that case.
- Looking for these boxes on an older form. The tip boxes are described as “This new box was added to facilitate this reporting requirement for Form 1099-K.”, so a March 2024 revision does not carry them.
Related: Schedule C (Form 1040), self-employment tax explained, first-year estimated taxes for the self-employed, and the 1099-K threshold page.
Sources
- Form 1099-K, Payment Card and Third Party Network Transactions (Rev. December 2026), recipient copy: https://www.irs.gov/pub/irs-pdf/f1099k.pdf
- Instructions for Form 1099-K (Rev. December 2026): https://www.irs.gov/pub/irs-pdf/i1099k.pdf
- Instructions for Form 1099-K (Rev. March 2024): IRS archived PDF (irs.gov)
Read from the IRS documents linked above on October 16, 2026. General information, not tax advice. Your own facts decide the outcome, and a preparer, the account provider or the IRS is the right place to confirm anything consequential.