This article is for information only and is not tax advice.
This article answers the Sprintax Returns question "Did you have valid DHS authorization when you received qualified tips or got paid qualified overtime compensation during 2026?" It explains what DHS authorization means and how it relates to the qualified tips deduction and the qualified overtime deduction.
What is DHS authorization?
DHS authorization is permission that the U.S. Department of Homeland Security (DHS) grants to a person. The permission lets the person legally work, enter, remain in, or receive certain benefits in the United States. An Employment Authorization Document (EAD) is one example of a document that shows DHS authorization to work.
Why does Sprintax ask about DHS authorization?
To claim the qualified tips deduction or the qualified overtime deduction, you need a Social Security number (SSN) that is valid for employment. The Social Security Administration (SSA) must issue the SSN before the due date of your tax return, including extensions.
If you file a joint return, a spouse who received qualified tips or qualified overtime compensation also needs an SSN that is valid for employment. If both spouses received qualified tips or qualified overtime compensation, both spouses need a valid SSN, and you include both SSNs on the return.
Which deductions does this question affect?
The question affects the following two deductions for tax year :
The qualified tips deduction.
The qualified overtime deduction.
You claim both deductions on Schedule 1-A. Schedule 1-A attaches to Form 1040, Form 1040-SR, or Form 1040-NR for the tax return.
What if I'm not sure that my DHS authorization was valid?
Check the documents that DHS issued to you, such as your EAD. Compare the dates on the documents with the dates when you received the qualified tips or the qualified overtime pay. DHS authorization must be valid on the dates when you received the pay.