Hello, I’m a piano tuner and get tips occasionally. Do I qualify for tip deduction? If so, what industry and job role would I select? A.I. suggests Recreation and instruction for industry and self-enrichment teacher for role but that just seems like a piano teacher. Thanks
Do you get a W2 for work or are you filing as self employment on Schedule C? Do you include the tips in your gross income?
Possibly. A piano tuner would be considered someone who customarily or regularly receives tips. If you are going to people's homes to repair/tune their piano you would likely be considered home services.
In order to deduct the tips the following must apply:
Yes I get a W2 and some of my tips are reported. I also have unreported cash tips that I have entered into turbo tax.
The tips on your W2 can be deducted from your taxable income. The unreported tips can be reported as self-employment income and then deducted as tip income but you will still pay social security and medicare taxes on those tips.
@RobertB4444 I'm testing this. I entered unreported tip income on schedule C under General (Desktop Home & Business version). Then where do you deduct tip income to get it on sch 1-A?
As of right now in order to get the tip deduction the tip income has to be reported to you on a 1099-K, 1099-NEC or 1099-MISC. It will carry to the 1-A by itself. That could change and there is an update expected this Friday and next Friday.