Skip to main content
Level 1
February 3, 2026
Question

Can I deduct tips when delivering food with Uber Eats and Doordash?

  • February 3, 2026
  • 1 reply
  • 102 views
No text available

1 reply

Level 15
February 3, 2026

Yes.  Since they are reported to the IRS on your 1099-NEC from Door Dash and UberEATS, you can deduct them for the No Tax On Tips Deduction.  Cash tips for self-employed individuals are not deductible as they do not meet the requirement that they be reported to the IRS

 

After you enter your 1099-NEC you will be asked if any of the amount in box 1 was from tips.  Select  yes and continue through

 In order to claim tips, all of the following must apply:

  • The tips MUST be reported.  If they are not reported on a form to the IRS you cannot claim them for the no tax on tips deduction.
    • If employed they need to be reported on your W-2 or form 4137
    • If self-employed, they must be reported on a 1099.  If you received them as cash, they are not deductible. 
  • Your income must be below $150,000 if you are single or less than $300,000 if Married Filing Jointly.  Above these amounts, the deduction starts to fade out and is not available at all for those with income over $400,000 for single and $550,000 for Married Filing Jointly.
  • You can not claim this deduction if you are Married Filing Separately
  • You receive tips from an occupation that normally and customarily receives tips
  •  The tips cannot be earned for pornography or prostitution 

If all of the above apply, TurboTax will generate a Schedule 1-A for your return.  This amount will be deducted from your AGI. Remember, this is a deduction NOT a credit.  This means it will lower your taxable income, which can lower your tax liability.  You will  NOT see a refund in the amount of the Tips you enter. Tips are reported on Schedule 1-a, Part II with the business portion reported on line 5 and the total amount you are qualified for reported on line 13 of Schedule 1-A.


 

**Say "Thanks" by clicking the thumb icon in a post. **Mark the post that answers your question by clicking on "Mark as Best Answer"