topic No Tax on Tips for Self Employed Hairdressers? in Self employed

No Tax on Tips for Self Employed Hairdressers?

user17701358437 — Fri, 06 Feb 2026 17:35:55 GMT

If you are a self employed hairdresser you do not get a W2! You have to keep a record of your income & tips. Schedule 1A should be the place to enter your “No Tax on Tips” exemption. Turbo Tax Home and Business will not let me enter my wife’s tips.

it says that self employed can not get the tip exemption but IRS publications says you can.

Please help us enter this tip exemption, want to file our Taxes.

Re: No Tax on Tips for Self Employed Hairdressers?

DawnC — Fri, 06 Feb 2026 17:47:41 GMT

You can't take the deduction unless it is reported to you on a tax form. Her expenses and income gets reported on Schedule C, not in the personal income, w-2 section. How to enter self-employed income and expenses

What self-employment expenses can I deduct?

Taxpayers may be able to claim a deduction for qualified tips paid to them in 2025 that are included on Form W-2, Form 1099-NEC, Form 1099-MISC, Form 1099-K, or reported directly by them on Form 4137. From the IRS

Re: No Tax on Tips for Self Employed Hairdressers?

user17701358437 — Fri, 06 Feb 2026 18:30:19 GMT

You highlighted the IRS publication where it tells about the 1099’s etc.

Read the paragraph above it where it says that self employed can deduct their tips in the profession of SALON WORKERS!

thanks

Re: No Tax on Tips for Self Employed Hairdressers?

LeticiaF1 — Sun, 08 Feb 2026 16:22:10 GMT

You are correct salon workers are listed as qualified occupations who are elegible to deduct qualified tips. In your case, to be able to claim the tips, they must have been reported to you on a Form 1099-NEC. You need to enter your Form 1099-NEC in the Self-employment section of TurboTax, in the Wages and Income area.

After you enter your Form 1099-NEC you will be asked if any of the income reported in box 1 is from tips. When you answer "yes" you will be able to enter your tip income and will be asked some questions to see if it qualifies for a deduction.

@user17701358437

Re: No Tax on Tips for Self Employed Hairdressers?

marquessa — Fri, 10 Apr 2026 02:22:56 GMT

turbo tax deluxe does not ever ask me the question of are any of the tips in box 1 have included tips

Re: No Tax on Tips for Self Employed Hairdressers?

marquessa — Fri, 10 Apr 2026 03:31:51 GMT

My 1099 nec reported my tips as wages. I havent come across a question about tips anywhere inside the self employment/business area not even under schedule c.

Re: No Tax on Tips for Self Employed Hairdressers?

Vanessa A — Fri, 10 Apr 2026 13:39:51 GMT

When you are in the business income section, and you enter the 1099-NEC you will see a box to check under the entries that say this income includes tips. Check that box.

If you enter in the income section of TurboTax instead of the business section, after you continue through you will come to a question that says Does this amount include tips? Say yes and then enter the amount that is tips.