topic 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? in Retirement tax questions

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 — Tue, 24 Feb 2026 22:58:41 GMT

Re: Does anyone know how you take the new tip deduction if you are a sole proprietor as a hairsty...

KrisD15 — Tue, 24 Feb 2026 23:09:36 GMT

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.

Re: Does anyone know how you take the new tip deduction if you are a sole proprietor as a hairsty...

a-vanderveer — Tue, 24 Feb 2026 23:58:34 GMT

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?