No Tax on Tips - 1099-NEC

Forum|Forum|4 months ago
February 28, 2026
1 reply
6 views

My client makes deliveries for Instacart and received a 1099-NEC. I entered the 1099-NEC information in the Form 1099 tab of the SS Benefits, Alimony, Misc Income section. I also entered the amount of Box 1 that are tips into the Cash Tips box on the next line. The tips data does not flow to Schedule 1-A. As a test, I transferred the tips amount to the OT compensation box on the next line, and that does flow to the OT section of Schedule 1-A.

Does anyone know how to get the 1099-NEC tips to flow to No Tax on Tips section of Schedule 1-A?

ProConnect Tax

T

TaxGuyBill

Level 15

@JoeC25 wrote:

I entered the 1099-NEC information in the Form 1099 tab of the SS Benefits, Alimony, Misc Income section.

I don't use ProConnect so maybe I am misunderstanding, but are you entering the 1099-NEC as part of a Schedule C business? It needs to be business income in order to get the deduction.

J

JoeC25Author

Level 2

Yes, I am attaching the 1099-NEC to the Schedule C. The income does flow to Schedule C, but the tips amount does not appear on Line 5 of Schedule 1-A. The profit reported on Schedule C is larger than the amount of tips.

Intuit_Kallana

Level 7

Hi @JoeC25 , on the 1099-NEC entry screen right under the box (1) Nonemployee compensation you will see two boxes for the Schedule 1-A deductions. One is for "Cash Tips" and one is for "Overtime Compensation", those are the boxes that you would use. There are the same boxes up above in the 1099-MISC section, as well. Also, here is an article for you for future reference: How to enter Form 1099-NEC, Nonemployee Compensation in ProConnect Tax . You can also always give us a call at Proconnect Support.

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