Tip deduction

Forum|Forum|4 months ago
February 23, 2026
1 reply
10 views

Hi. I received a 1099-Nec for my earnings and a 1099-Misc for my tips from the same employer. When I put the numbers in the Self-employment section of wages and income, after I put in the 1099-Misc it didn’t ask me if this was tips and it didn’t deduct it as tips from my income. It did ask me after the 1099-Nec but not after the 1099-Misc. How do I deduct my tips from my income?

Best answer by DavidD66

The best thing to do would be to get a corrected Form 1099-MISC, or better yet, have it replaced with a Form 1099-NEC. If you can't do that, I suggest reporting the 1099-MISC as if the amount reported as Rents was reported as "Other Income" and enter it as such in TurboTax.

DavidD66

Level 15

You can indicate that the income reported on the 1099-MISC is from tips. You just have to go through several screens of questions before you get there. I assume the tips reported on Form 1099-MISC are in Box 3 -Other Income. After you enter your 1099-MISC and Continue...

Enter "Tip Income" or similar for "Describe the reason for this 1099-MISC"
Indicate "None of these apply" on the page with "Do one of these uncommon situations apply?"
On the next screen "Did the Tips involve work that's like [your] main job? indicate "Yes".
On the "Select or enter the line of work..." page, mark the button next to your Business, or if you haven't set it mark "Add a new line of work"
The next page says "Let's check if you can deduct tips or overtime" Mark "Yes" after "Does this amount include tips?"
On the next screen enter your "Total eligible tips".
Continue and answer the remaining questions.

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

SpacefishAuthor

Level 2

Hi DavidD66,

Thank you for your quick response. On the form 1099-MISC, my tips are in Box 1,- Rents, I don’t know why. After I entered my 1099-MISC and pressed Continue, it took me to my work info/summary page. There was no chance to answer any questions.