No tax on gratuity

[Wneisler]

I have a second, part-time job where I receive a 1099-NEC that is for 100% gratuities. For 2024 I had to purchase an upgraded version of turbo tax to add a 1099-NEC. What version do I need to purchase if I’m solely entering the 1099-NEC as tax free gratuities? Do I still need to purchase the updated version?

[LaShaunA3]

Yes, you will still need to upgrade. A 1099-NEC is always treated as self-employment income by the IRS, even if it’s gratuities, so it must be reported on Schedule C. TurboTax requires Deluxe (desktop) or Premium/Self-Employed (online) to enter a 1099-NEC.