Independent Contractors and tips

[cjwood82]

For those people who are self-employed (independent contractors) in the service industry and receive a 1099-MISC at the end of the year, do tips need to be separated out in income in any way like they are when you are an employee on a W-2? My husband and I are both food delivery drivers and receive a 1099 for the money we make through that. Do the portion of that pay that is tips need to be identified as tips or is it all just the same income. (I've never dealt with this before only as an W-2 employee and I know it is divided out on that). Thanks in advance.

[AnnetteB6 · Accepted solution]

It is all considered just income.  You do not separate the tips from the other income.

@cjwood82

[Hal_Al]

If the tips are not included on the 1099-Misc, you do need to add them. But, you don't identify the money as tips, just income not included on a 1099-misc.  Turbotax will add the two together as gross receipts

[cjwood82]

Thank you. 

This is for the current year so I haven't seen the 1099 yet but our tips our paid out all together. I'm guessing that it will all be listed as non-employee compensation and not separated. 

[Critter]

If you go into work when the boss tells you , work the way they tell you, only work for them and report all your tips to them then you are NOT a subcontractor  ... you ARE an employee and the employer should treat you as such ... incorrect employment status is frowned upon heavily ...   https://www.irs.gov/taxtopics/tc762