How do you enter tips for the owner of a Schedule C business?

Look under Line 7 on the Sch C worksheet.

If you mean for the tip deduction, you need to enter a 1099-NEC, 1099-K or 1099-MISC worksheet because the tips need to be reported on a 1099.  Those 1099 worksheets have questions about tips.

I doubt if any schedule C filers add tips to their income, so not in income, no deduction

Has anyone contacted Pro series with this issue. I believe it is a software issue. 

Has anyone noticed how IRS hasn't issued an FAQ on tips, as they have done with overtime?  The reason is that they are struggling with this issue, because they don't want to tell a million self-employed service-industry voters that they are second-class citizens compared to W-2 drones.  My expectation is that eventually the answer will be, "obviously the statute refers only to occupations where a 1099 is necessary and customary, so for those not in that category the 1099 requirement does not apply."  

Might take them a while to square the circle, but remember what they did with the exclusion for unemployment on separate vs. joint returns, back in the Covid era.  

If I'm a self-employed DoorDash driver and a guy hands me a $100 cash tip, do I have to pay tax on it because there's no 1099 to back it up?  

Hi,

I use Proseries and I have the same problem.The Qualified Tips worksheet doesn't populate.

Did you ever find an answer the problem or did you just override?

Steve

  for 2025, unless they received a 1099NEC or 1099k and can enter it on one of these worksheets, you wont be able to get the tips deduction for Sch C.   Thats supposed to change for 2026 forward, I guess we'll see.

Hi Lisa,

Is that how the IRS drew it up? So many conflicting answers, I thought maybe it was specific to Proseries.

Steve

 If you read through the 52 posts in this thread before yours I think you'll find the answer.