@danaegoldengirl71 wrote:
The IRS website explicitly says that self employoed do not need a 1099 for tips if you keep records of them.
No, it does NOT say that. It says the 1099 does not separate out the tips, so the person can calculate the amount of tips by their own records. It still needs to be on a 1099.
The 1040 Instructions have that same example, and immediately below it the Instructions say:
"Only amounts that appear in the aggregate on Forms 1099 can be considered qualified tips. Any “cash tips” received by the tour guide in actual cash that don’t appear on Form 1099-K cannot be included in the deduction."
https://www.irs.gov/pub/irs-pdf/i1040gi.pdf#page=104
