DavidD66
Employee Tax Expert

Deductions & credits

You can indicate that the income reported on the 1099-MISC is from tips.  You just have to go through several screens of questions before you get there. I assume the tips reported on Form 1099-MISC are in Box 3 -Other Income.  After you enter your 1099-MISC and Continue...

 

  • Enter "Tip Income" or similar for "Describe the reason for this 1099-MISC"
  •  Indicate "None of these apply" on the page with "Do one of these uncommon situations apply?"
  • On the next screen "Did the Tips involve work that's like [your] main job? indicate "Yes".
  • On the "Select or enter the line of work..." page, mark the button next to your Business, or if you haven't set it mark "Add a new line of work"
  • The next page says "Let's check if you can deduct tips or overtime" Mark "Yes" after "Does this amount include tips?"
  • On the next screen enter your "Total eligible tips".  
  • Continue and answer the remaining questions.
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