No tax on tips for 1099-nec

Forum|Forum|7 months ago
February 25, 2026
7 replies
167 views

I earned income for instacart and qualify for "No Tax on Tips". When I entered the info for my 1099-nec it never offered an option to list tips, the 1099 only had the income box filled. I entered this info two weeks ago. Today I got an email form instacart stating what my tips were for 2025.I have used the search, called turbo tax support, checked chat gpt which said others have had this issue. Is the software not up to date? If not when will it be or what will turbo tax do to allow the tips to be entered?

ThomasM125

Alumni - Intuit

The "No tax on Tips" update you mention for income reported on a Form 1099-NEC is active currently in both the desktop and online versions of TurboTax. I just tested this and had no trouble entering in tip income not reported on a Form 1099-NEC. I suggest you try again and if it doesn't work, delete the Form 1099-NEC you entered and re-enter it. You should see the Tip income questions after you enter in your Form 1099-NEC.

1. Choose the Tax Tools option on your left menu bar while working on your return

2. Choose Tools

3. Choose the Delete a form option under Other Helpful links

4. Find the Form 1099-NEC in the list and delete it

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bhilton174Author

Level 2

OK thank you and I will try. Is it possible I did not receive the. option because of when I initially entered it. Is it possible the software (web based version) did not yet have this option?

ThomasM125

Alumni - Intuit

It is possible since the option was not available when you entered the asset originally it won't work on that entry, so that is why it may be necessary to delete the entry and re-enter it.

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