HELP! I am a sole proprietor. I have a mobile dog grooming business. My clients are individuals so I do not receive 1099's. Fees are mostly paid via Venmo or Zelle (some pay in cash). I received over $13K in tips in 2025. According to the IRS Publication 69 (list of eligible industries/professions), I would be eligible for the deduction. However, in TT, under the 'Summary of tips', it says none of the tips qualify for the deduction because they were not reported on 1099's. In my research, I did not see anything saying income had to be REPORTED on a 1099 or W-2 to be eligible for the deduction. If this is the case, is would exclude a very large population of workers (independent hair stylists, massage therapists, nail salons, etc). Can this be correct or is there another way to input tip income in TT?
Thank you!
