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tknazek
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Am I able to claim tips if I'm filing as a small business owner?

I do not see a place to claim tips. Do I have to have a W2 in order to claim tips?
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2 Replies

Am I able to claim tips if I'm filing as a small business owner?

Wouldn't you just add them in as income?  On schedule C line 1 with your business income.

Am I able to claim tips if I'm filing as a small business owner?

If you are tipped, that's just more taxable income.  You are expected to keep your own accurate records of your income and expenses and report them even if you don't get tax paperwork like 1099s.

 

It doesn't especially matter how you report it.  If you mow lawns and you invoice someone for $40, and they pay you $45, you can enter that as a $45 job or as $40 plus $5 of other income. 

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