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New Member
October 14, 2026
Question

How do i enter my tips if i am self employed?

I am a hair stylist. i work for myself so i dont have a 1099. my payments to my salon include tips and i want to enter for the no tax on tips deduction.

2 replies

M-MTax
Level 15
October 14, 2026

To claim the federal "No Tax on Tips" deduction as a self-employed hair stylist, the IRS requires your tip income to be officially reported on a tax form like a Form 1099-NEC or 1099-K. If your salon or payment processor did not issue you a 1099 form that separates your tips, TurboTax will not allow you to apply the tip deduction for those specific amounts.

 

Even though you cannot claim the deduction without a 1099, you are legally required to report all cash and card tips as ordinary gross income on your tax return. 

M-MTax
Level 15
October 14, 2026

If your salon processes credit card payments for you, ask them if they code and report your card tips separately so they flow correctly onto a Form 1099-K or 1099-NEC. Having that official document is the only way to unlock this deduction on future returns.