Where to enter tip deduction info for 1099 worker?

[waves25]

I am a 1099 delivery driver for Doordash, Uber Eats, etc, and I'm using Turbotax Home and Business for my taxes. These companies issued 1099-NECs, but did not include the tips since these forms weren't updated by the IRS in time for the 2025 tax year. Where in Turbotax do I enter my qualified tips for the No Tax on Tips deduction?

[AmeliesUncle]

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@waves25 wrote:

These companies issued 1099-NECs, but did not include the tips since these forms weren't updated by the IRS in time for the 2025 tax year. 

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Are your tips included in the amount in Box 1 of the 1099-NEC?

The tips don't need to be separately stated on the 1099 for the 2025 tax year, but they still need to be included in the amount in Box 1 of the 1099-NEC.  

[waves25]

Yes, they are included in Box 1 of my 1099-NECs. However, TurboTax is not asking me anything about tips when entering the 1099-NEC info or anywhere else in the Business Income section.

[Mike9241]

the tip questions should come from the 1099-NEC that you entered which should be linked to a schedule C.

after entering the box 1 amount and continue. The next page should say Let's check if you can deduct any tips. Ay least this is the way the desktop app performs in step mode.

For 2025, payors were not required to report the tip income on the tax form. In your case 1099-NEC. Thus, the number will have to come from paystubs or other sources. Be sure to keep copies of whatever you use. 

[ThomasM125]

After you enter the amount of tip income received, as mentioned by @Mike9241 , you will need to indicate that you worked in the Transportation and delivery industry and your role was that of a Goods Delivery People to get the tip deduction. You will see that request on the screen that says "Tell us a little more about your (description of work) work." 

[waves25]

@Mike9241 and @ThomasM125 , thanks for your replies. Here's the strange part - I only see the question about tips and industry/role when I am entering 1099-NEC info when attempting to file as Married Filing Jointly. However, when I attempt to file as Married Filing Separately, the tip-related questions do not appear at all (I wanted to try both ways to see the tax difference). Any ideas why this might be the case?

[JohnB5677 · Accepted solution]

You are correct.  To take advantage of the "No Tax on Tips" deduction, you must file jointly if you're married.

See IRS notes regarding No Tax on Tips

[waves25]

@JohnB5677  Thank you - that solved my issue.

[kmorris8430]

I am single, not married.
I do Doordash as my main source of income. My 1099-NEC does not include a separate box for tips.
Doordash sends us our tip amount for the year via e-mail.

I cannot find any option, nor does anything result in search from inside the web application for "No tax on tips" to enter my deduction as it is a fairly substantial amount that I shouldn't be taxed on now with the OBBB passage.
Is this option only available in the software version?
As stated, I'm using the web browser which is the premium version to try and file my taxes.
I have gone through all deductions and cannot find anywhere to input my tip amount.

[LaShaunA3]

As you enter your income info into TurboTax, the software will ask questions about your tips and apply the deduction.  You are correct that ‌many 1099-NEC forms don't show tips separately. 



"You should use your daily tip logs or business records to find your total tips. Keep these records in case the IRS has questions later."



Reference, New Tax Law for Tips

How do I enter tips in TurboTax online?

[kmorris8430]

software never asked me to enter in any tips for deductions. 

I'm unable to find any deduction mentioning/referencing tips to enter.

Again, is this an issue with the web based system and is not available or do I need to purchase the software for it have this feature?

As stated I have gone through it time and time again and at no point does the web based version ask me to enter in anything for tips for deductions.

[MindyB]

Yes, there is a way to enter your tips.  You will find questions regarding this after you enter your 1099-NEC.  

Re-navigate to the W-2 entry (Federal > Self-employment income > Schedule C, expenses, Forms 1099-NEC and 1009-K). Edit the business for your Doordashing and go back to the income section.  Select the pencil icon to next to the 1099-NEC you already entered and continue through the data entry section.  You'll then see a screen entitled Let's check if you can deduct any tips, and you'll be asked if any of the amount in box 1 of your 1099-NEC is from tips. When you answer yes, a box will appear and you can enter your tips. 

Continue through the interview to make sure you get to the screen that asks you to confirm you work at a job that is eligible for the tip deduction.  You'll need to provide information about your job (industry, role, and answer yes or no to some uncommon situations that preclude the tip deduction.)

See No Tax on Tips: How It Works in the One Big Beautiful Bill for more information.