Box 12b on W2 showing uncollected Medicare tax on tips - what does this mean?

I'm really confused about something on my W2 form. I work at a warehouse and only get paid hourly - no tips whatsoever. Yet for some reason, Box 12b on my W2 shows "uncollected Medicare tax on tips." This makes absolutely no sense to me since I don't receive any tips at all! I have two questions that are really bugging me: 1) Why would this box be filled out when I don't work in a tipped position? I literally just clock in, work my shift, and clock out. No customer interaction or anything like that. 2) I already filed my taxes and completely forgot to include this when I was entering my W2 info. My return was accepted already. Am I going to have problems with the IRS now? Should I file an amended return to fix this or just leave it alone? Any advice would be super appreciated! I'm stressing out about this.

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18 comments

Cole Roush

•8M

This is actually pretty common and nothing to worry about! Box 12 with code B on your W2 is for uncollected Medicare tax on tips, but it appears on many W2s even for non-tipped employees due to payroll software defaults or employer accounting systems. For your first question, this could be there for a few reasons. Sometimes employers mistakenly classify certain bonuses or incentive pay as "tips" in their payroll system, or there might be a configuration error in the software they use. It doesn't necessarily mean you received actual tips. For your second question, if the amount in Box 12b is zero or very small (like under $10), you generally don't need to worry about filing an amended return. The IRS typically won't flag this as a significant issue. However, if there's a substantial amount listed there, you might want to contact your employer's payroll department first to understand why it's there and if it was reported correctly.

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Cole Roush

•8M

With the amount being only $4.76, you definitely don't need to worry about amending your return. That's small enough that it won't impact your tax situation in any meaningful way. It might be worth a quick call to your employer's payroll department just to understand why it's showing up, especially if you're curious about whether it will continue to appear on future W2s. They should be able to explain if it was a one-time accounting thing or if something needs to be corrected in your employment classification. But from a tax perspective, you're absolutely fine leaving things as they are.

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Scarlett Forster

•8M

I ran into a similar situation last year that caused me so much confusion! I finally figured it out by uploading my W2 to taxr.ai (https://taxr.ai) which actually explained exactly what was happening with my tax forms. The site analyzed my W2 and showed that my employer had some kind of special bonus structure that was being classified as "tip-like income" for tax purposes even though I don't work for tips either. The explanation from taxr.ai made it super clear that it wasn't a mistake, just an unusual classification. The site also confirmed I didn't need to file an amended return since it was properly reported on the W2 already. Saved me hours of stress and a call to the IRS!

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Scarlett Forster

•8M

The accuracy is actually impressive - it identified specific IRS codes and regulations related to my situation, not just generic stuff. It showed me exactly how my employer was classifying certain incentive bonuses and why they appeared in box 12b. Even pointed out some other deductions I missed. It both explains what each part of your tax forms means AND checks if you've filed correctly. In my case, it confirmed my original filing was fine despite the confusing W2 code, but it also highlighted a work expense deduction I could have taken. Super helpful for understanding if you need to amend or not.

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Sayid Hassan

•8M

I just tried taxr.ai after seeing it mentioned here and wow - it solved my Box 12 confusion in minutes! I uploaded my W2 and it immediately explained that my employer's quarterly performance bonus was being classified under a special IRS rule that puts it in Box 12b even though it's not actually a tip. It also confirmed I don't need to file an amended return since the amount was under $10, and the system already accounts for these small discrepancies. The detailed explanation even showed me the specific IRS regulation number that covers this situation. Such a relief to finally understand what's going on with my taxes!

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Rachel Tao

•8M

If you're still worried, you might want to try calling the IRS directly to confirm you don't need to amend. I've been trying to reach them for weeks about a similar W2 issue and it's impossible to get through! After 3 hours on hold one day, I finally found Claimyr (https://claimyr.com) which got me connected to an actual IRS agent in under 25 minutes. You can see how it works in this video: https://youtu.be/_kiP6q8DX5c - basically they navigate the phone tree for you and call you back when an agent is on the line. The IRS agent I spoke with confirmed that small discrepancies in Box 12 codes usually don't require amendments, especially if the amount is under $25. Saved me so much stress!

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Rachel Tao

•8M

It's definitely real. They use an automated system that continually calls the IRS using the right options in the phone menu, then stays on hold for you. When a real person answers, they connect you. It's not changing the IRS wait times, it's just handling the waiting for you. The service works because they have technology that navigates the complex IRS phone trees and waits on hold instead of you having to do it yourself. Think of it like having someone else sit on hold for hours while you go about your day, then they call you when an actual agent is on the line. Nothing fishy about it - it's just automating the horrible hold time experience.

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Danielle Mays

•8M

I was super skeptical about Claimyr when someone mentioned it here, but I was desperate after 4 failed attempts to reach the IRS about some W2 box codes I didn't understand. Honestly, I'm shocked to say it actually worked exactly as promised. I signed up, and about 2 hours later got a call connecting me directly to an IRS agent - no waiting on my end! The agent confirmed my Box 12 codes were nothing to worry about if they contained small amounts and explained that employers sometimes use these codes for special bonuses or incentives. She said as long as the amount is small (under $50), there's no need to amend. Saved me so much time and stress compared to my previous attempts!

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Roger Romero

•8M

Similar thing happened to my cousin. His employer explained they had a holiday bonus system that gets classified as "notional tips" for some weird tax reason, even though he works in a warehouse. HR explained it was related to how they structured year-end bonuses to maximize tax advantages for employees. Did you possibly get any kind of performance bonuses or special payments last year? Those sometimes get weird tax classifications depending on how payroll processes them.

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Roger Romero

•8M

That's almost certainly what it is! Those "appreciation bonuses" or "spot bonuses" often get classified differently in payroll systems depending on how they're structured. Companies sometimes use these special classifications because they can be advantageous for either the company's tax situation or yours. The $50 bonus matching up with a small amount in Box 12b makes perfect sense. You definitely don't need to worry about amending your return for something this small and routine. It's just one of those quirks of the tax system that seems confusing but is actually pretty standard once you understand what's happening behind the scenes.

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