How do I report the non taxable tips a self employed hair dresser receives? She reports them on Schedule C, but does not have a 1099 for them.

Forum|Forum|8 months ago
January 28, 2026
17 replies
212 views

I understand that self employed hair dressers can use the "No Tax on Tips" deduction but I can't seem to figure out how to report it on schedule 1-A.

ProSeries Professional

Just-Lisa-Now-

Intuit Community Champion

Unless those tips were broken out on a 1099NEC or 1099K, you dont

♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪

caroljoAuthor

Level 5

I was afraid of that but it seems like it should be changed. Self employed hair dressers don't get any 1099's but they report their tips on Schedule C. Thank you for your help.

Just-Lisa-Now-

Intuit Community Champion

I think the payment processors will be breaking tips out on 1099ks for 2026, so salons should be sure to code their sales correctly if they want to utilize the deduction next year.

♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪

C

c543

Level 2

I Just today talked with some one at Pro Series and asked the same question. Since the transition relief it appears the software needs to be updated to allow the space to report the cash and charge tips the hairdresser’s have received and get their entitled deduction.

T

TaxGuyBill

The transition relief did NOT eliminate the need for a 1099. It just eliminated the need for it to be separated out on the 1099.

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