Entering a W-2 in the Individual module of Lacerte

For tax year 2025 the IRS did not have specified mandated reporting requirements on how to report Qualified Tips and Overtime on the W-2. These may have been broken out on box 14 of the W-2 or a supplemental statement or need to be manually calculated. See guidance here.

Follow these steps to enter Form W-2 information:

1. Go to Screen 10, Wages, Salaries, Tips.
2. Scroll down to the Employer Information (MANDATORY for e-file) section.
3. Enter and complete any applicable fields with information about the employer:
   • (b) Employer identification umber (EIN)
   • (c) Name of employer
   • Street address
   • City / State / ZIP code
4. Scroll down to the Wages section.
5. Enter the information reported on the W-2.
   • The numbers next to each field correspond with the Form W-2 boxes.
   • You can also use the Grid to report the wages, federal withholding, Social Security wages, Social Security withholding, Medicare wages, Medicare withholding, and state withholding.
6. Scroll down to the State and Local section.
7. Enter the (17) State income tax withheld.
   • When working with a multi-state return, only enter amounts in (16) State wages, if different when the total for state wages is different than the federal amount. Otherwise, enter the combined state wages in box one with the state indicators next to each item. The total will be reported on the federal 1040. Refer to this article for more information.
8. Select Add from the left navigation panel to add additional W-2s.

Entering Qualified Tips and Overtime for the Schedule 1-A for tax year 2025

Entering Qualified Tips as qualified tips received as an employee on Form W-2 Box 7 for line 4a of the Schedule 1-A:

1. Go to Screen 10, Wages, Salaries, Tips.
2. Enter the amount on box 7 as Social security tips.
3. Scroll down to Box 14.
4. On the Qualified tips received as an employee field enter the amount of qualified tips.

Entering qualified tips included on Form 4137 but not included on the W-2 box 7 for line 4b of the Schedule 1-A:

1. Go to Screen 10, Wages, Salaries, Tips.
2. Scroll down to the Form 4137 section.
3. Enter the amount on the best applicable line for the tax situation.

Entering qualified overtime on a W-2 for the Schedule 1-A line 14a:

1. Go to Screen 10, Wages, Salaries, Tips.
2. Enter the amount on box 1 per the W-2 received.
3. Scroll down to Box 14.
4. On the Qualified overtime compensation included on Form W-2, box enter the qualified amount.

Starting in tax year 2022 the IRS has redesigned the 1040 line 1. Instead of a single line 1 there is now 1a through 1i showing the breakdown of earned income from various sources. This will not change your data entry or calculations but it will change how amounts are displayed on the 1040. See the 1040 instructions for more information.