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Recreation and Instruction
Tour Guides
TTOC 704 · Box 14b expected code 704
If you work as a tour guides and you receive cash tips reported through §6053(a) on a W-2 (or through your own books on Schedule C), Treasury's final regulation lists this trade under TTOC 704. The §224 qualified-tips deduction applies up to a $25,000 cap, reduced by $100 for each $1,000 of MAGI above $150,000 (single) or $300,000 (joint). This page is a long-tail navigational entry with the decoder pre-filled to your TTOC; for the deepest worked examples, see /occupation/wait-staff (cleanest restaurant case), /occupation/dancers (SSTB-edge case), or your category's tier-2 page.[1][2][3]
Personalized calculation
Calculate your deduction.
The decoder below is pre-filled to Tour Guides (TTOC 704). Enter your tax year, filing status, wages, and MAGI to see the cap and phase-out math run against your numbers. Compute is 100% client-side — nothing about your wages or MAGI leaves this page.
TTOC tip-deduction decoder
Pick an occupation, set your tax year and filing status, and enter your wages and MAGI to see the deduction math. The output here will update once you press Calculate.
Statute-cited expansion
Statute and trade context.
Enabling statute: P.L. 119-21 §70201 (qualified tips) [1], codified at 26 USC §224[2].
TTOC list source: 26 CFR §1.224-1 (TD 10044, 91 FR 19026, April 13, 2026); the list places this trade in the 700s (Recreation and Instruction) category at code 704[3].
Transition relief: IRS Notice 2025-69 §3 (qualified-tips reporting transition relief for tax year 2025) and §6 (SSTB transition relief while §1.224-1(g) is reserved) [4][5].
W-2 mechanics: Box 14b carries the TTOC under §6051(a)(18); Box 12 code TP carries the cash-tip dollar figure[6][7].
How the §224 deduction works for tour guides
Tour guides — local-attraction guides, museum guides, walking-tour operators, food-tour operators — sit in TTOC 704. The trade is split between W-2 at large operators (city pass tour groups, major-museum operators) and Schedule C / 1099-NEC at independents and freelance guides on platforms (Airbnb Experiences, ToursByLocals). Tipping is highly customary in this trade — the end-of-tour cash gratuity is the dominant supplemental compensation.
For tax year 2026, your employer should report TTOC 704 in Box 14b on your W-2 and the cash-tip dollar figure in Box 12 code TP. The deduction is computed on Schedule 1-A from the Box 12 code TP figure, capped at $25,000 per return, and reduced by $100 for each $1,000 of MAGI above $150,000 (single) / $300,000 (joint).
For tax year 2025 specifically, IRS Notice 2025-69 §3 transition relief waives the Box 14b reporting requirement under §6051(a)(18). The deduction on the tax year 2025 return is computed from cash tips reported on Form W-2 lines 1 and 7 — Box 14b is not required to be present.
Mandatory service charges and automatic gratuities are wages, not qualified tips. The deciding question is whether the customer was free to set the amount, including zero.
Box 14b verification for tour guides
When a tax year 2026 W-2 arrives, the first sanity check for tour guides is whether Box 14b carries 704 (or 704 plus a second TTOC if the worker covered an additional tipped role for the same employer that year). The second check is whether the dollar figure in Box 12 code TP is consistent with the worker's own records of cash tips reported under §6053(a) during the year — credit-card tips, debit-card tips, gift-card tips, and any cash reported through a daily slip or app.
Off-payroll cash never reported. Independent and platform-routed tour guides commonly receive cash gratuities at tour conclusion that never reach a payroll system. The §224 deduction requires the tip to be in Box 12 code TP (W-2 path) or in the guide's own books (Schedule C path); off-the-record cash is not in the deduction.
If the employer cannot or will not issue a corrected W-2c within a reasonable period (commonly cited as 30 days in the Form 4852 instructions), the IRS-blessed escalation is Form 4852 (Substitute for Form W-2). Reconstruct reported tip wages from paystubs and the personal tip log, attach Form 4852 to the return, and explain the efforts made to obtain a corrected W-2 from the employer.
Tipping conventions for this trade
Tipping conventions for tour guides vary by venue and region. No single industry-association rate applies generally.
Common payroll mistakes
Box 14b 000 by payroll default
If your tax year 2026 W-2 shows TTOC 000 in Box 14b and you worked as a tour guides, request a Form W-2c citing TD 10044 listing TTOC 704.
Service charges miscoded as tips
Mandatory service charges and automatic gratuities are wages. Only voluntary, customer-set amounts qualify under §224.
Actionable artifact
Next steps for tour guides.
If you filed your 2025 return without the §224 deduction, the amend window under §6511(a) generally runs through April 15, 2029. Form 1040-X with Schedule 1-A is the path.[1]
Amend walkthrough →For tax year 2026 onward, your W-2 should show TTOC 704 in Box 14b. If it shows 000 or is blank, the validator helps you decide whether to request a Form W-2c.[1]
Box 14b validator →