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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!

@Hal_AI or other experts, I’m still not clear on whether taxable scholarships our student reports as income increase the qualified portion of our 529 distribution or reduce it – depending on whether we took a 529 reimbursement for some of the scholarship total, or didn’t take a 529 refund. Tuition is 100% paid with a restricted scholarship (no impact). $766 in fees go to AOTC (< $4K fees & supplies), the rest aren’t required for attendance and count as 529 NQEE together with living expenses: $1,578 in 529 non-qualified expenses. R&B = $12,056 One $2K unrestricted scholarship we took back from the 529 – after it was applied to R&B on direct bill. Can we still count this (if paying taxes on it) toward allowed 529 expenses (R&B)? So does that increase 529 QEE out of $14,693 total distribution? (Or reduce it?) Another ~  $2K unrestricted scholarship we took as a refund direct from the college and applied to living expenses. Does this increase or reduce our 529 QEE out of total distribution? Assume both scholarships are fully taxable. Right now I have $11,946 as 529 QEE, and $2,747 as 529 NQEE, but I haven’t factored in the second scholarship. Thanks for your help!!