Sole Proprietor Tip Income

[swick]

Hello.

As a sole proprietor, where do I report tip income for tax year 2025, since up to $25,000 in tip income is not taxable, per the Big Beautiful Bill. I assume I should report it somewhere (Schedule C?), then it will be automatically deducted somewhere in the tax return? Do I gross up my total income and show the tips as a deduction elsewhere, or net the tips from total income and input the tip amount elsewhere?

Thank you.

[Bsch4477]

The IRS is still dealing with how this will be handled. 

[swick]

Thank you for your response. I had a feeling this might be the case, with all of the changes, updates are not incorporated yet into Turbo Tax or other tax software.