rjs
Level 15
Level 15

Get your taxes done using TurboTax

Yes, the "gifts" from your clients are taxable income. Since you are self-employed, "tips" are no different from any other payment that you receive from your clients. It's all income that you received in the course of your business. You would not have gotten any of the extra money if you had not cared for the clients' pets. And you did work for the holiday gifts. You just got paid sometime after you did the work.