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Level 1
posted Feb 22, 2026 5:14:13 PM

Tip deduction

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?

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1 Best answer
Employee Tax Expert
Feb 22, 2026 9:00:17 PM

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.  

4 Replies
Employee Tax Expert
Feb 22, 2026 5:39:43 PM

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.

Level 1
Feb 22, 2026 7:08:30 PM

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.

Employee Tax Expert
Feb 22, 2026 9:00:17 PM

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.  

Level 1
Feb 22, 2026 10:01:34 PM

Thank you! I will contact my employer and ask for a corrected form.