Does anyone know how you take the new tip deduction if you are a sole proprietor as a hairstylist? You can’t 1099 yourself, so how do you take the deduction on turbo tax?

a-vanderveer · ‎February 24, 2026

KrisD15

If you use a third-party payment service, such as Square, you should get a 1099-K and you can use that.

Otherwise, at this time, because of IRS regulations, tips can only be claimed if they are first reported on a tax form, such as Form 1099 or W-2.

I suggest you keep the tip log (as you should regardless) and if the IRS changes their reporting requirements, you can file an amended return for the "No Tax on Tips" additional deduction.

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a-vanderveer

I really appreciate the response. I do not have a square, but I take a lot of payment through Venmo, I wonder if they’d be able to issue anything?

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Does anyone know how you take the new tip deduction if you are a sole proprietor as a hairstylist? You can’t 1099 yourself, so how do you take the deduction on turbo tax?