Any tips you receive as a self-employed taxpayer are part of your gross receipts and are considered taxable income to you. Per the IRS, that income is subject to both income and self-employment tax.
Here is a list of self-employment expenses you can deduct. You cannot deduct income, only expenses.
IRS Pub 334 - Tax Guide for Small Businesses. See Chapter 5.
Schedule C instructions - See Line 1 - gross receipts.
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