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caroljo
Level 5
January 28, 2026
Question

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.

  • January 28, 2026
  • 1 reply
  • 23 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.

 

1 reply

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

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

♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪
caroljo
caroljoAuthor
Level 5
January 28, 2026

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
January 28, 2026

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♥¸¸.•*¨*•♫♪