How to report self-employed tips

rebsjb · ‎February 09, 2026

I am the sole employee/owner of a coffee shop. I'm trying to report my barista tips to be able to receive the new tax deduction. But I am unsure what form to fill out. I tried filling out the form 4137 but it wants to take the information from my previous employer instead of my current business. Any help would be appreciated!

CesarJ

Because you are self-employed and the owner of the coffee shop, you can't use Form 4317 to report tips. Employees only use Form 4317 to report underported tip income received by the employer. Since you are both the owner and worker, your tips are considered self-employment income.

Your barista tips should be included in your business income. You should report them on Schedule C, along with your other business income and expenses.

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