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Level 1
February 28, 2026
Question

ARE TIPS ON SELF EMPLOYED INCOME TAXABLE ?

  • February 28, 2026
  • 2 replies
  • 8 views
TIPS ON SCHEDULE C INCOME TAX EXCLUDED FROM INCOME

2 replies

Just-Lisa-Now-
Intuit Community Champion
February 28, 2026

were they included on a 1099NEC or a 1099K?  Cash tips cant be deducted this year for Self employed.

♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪
Intuit Community Champion
February 28, 2026

@Just-Lisa-Now- I've done a couple of door dash drivers, and they get a report from Doordash on the amount of tips included in their 1099, so they can deduct them

Just-Lisa-Now-
Intuit Community Champion
February 28, 2026

right, I have as well, they need a 1099 of some flavor, NEC or K, to get the tips deduction.

♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪
Intuit Community Champion
February 28, 2026

Here are IRS instructions for tips. Link https://www.irs.gov/newsroom/one-big-beautiful-bill-how-to-take-advantage-of-no-tax-on-tips-and-overtime

Taxpayers may be able to claim a deduction for qualified tips paid to them in 2025 that are included on Form W-2, Form 1099-NEC, Form 1099-MISC, Form 1099-K, or reported directly by them on Form 4137.