I'm a self employed hair stylist. Where do i add my tips onTurboTax Self-Employed Tax Prep Checklist? Thanks

Forum|Forum|1 year ago
February 17, 2025
3 replies
85 views

It says total gross and gst.. tips aren't taxed with gst..

pk_

Level 15

@RodEgby , under current laws, tips are treated as ordinary & active income. So on your schedule-C, you show this as gross income. TurboTax will walk you through filling out the Schedule-C. Note that the net income from Schedule-C will trigger filing of Schedule -SE and therefore the SECA tax ( this is the equivalent of FICA taxes paid by wage earners except it is at 15.3% of the income --- Social Security and Medicare tax and because you have no employer to share with ).

Does this make sense ? Is there more I can do for you ?

DawnC

Level 15

You can include the tips with your other business income. Tips are general or other self-employment income. All cash revenue can be reported on the same place on Schedule C in TurboTax as it is all taxed the same. Where do I enter self-employment income.

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Aidenross

Level 2

If you're self-employed, cash and card tips are generally considered part of your business income, so you would usually include them in your total gross income. They aren't subject to GST/HST in the same way as the services you charge tax on, so don't add them to the GST/HST collected amount unless your local tax rules specifically require it. If you're unsure, it's worth checking with a tax professional or the TurboTax support team.

I ran into a similar question when helping organize the books for Ace of Fades 212, and keeping tips included in gross income but separate from GST made the reporting much clearer.