Tips Credit for Self-Employed`

[Neens]

I have a client who is self-employed as a hair dresser and receives tips.  I would like to record the tips credit for her but under the "Qualified Tips Smart Worksheet for Schedule 1-A, Part II", none of the business information for net profit appears and there are two asterisks next to "All other tips (such as cash) from individuals" that says these tips are not currently eligible but may be in the future.  

Does this mean the tips credit doesn't apply to self-employed individuals?  Or do I need to check a box or record something elsewhere within Proseries?

Thank you!

[RobertB4444]

Self-employed individuals in a line of work that customarily and regularly receive tips are eligible to take the deduction and that includes hairdressers.  Make certain that you have the correct employment selected.

[Neens]

I just realized it only allows the tip credit if the tips are coming from Form 1099.  They are not allowing cash tips to be reported.

[Vanessa A]

If she will get a 1099-K, you can still take the tip deduction IF she kept daily logs showing the amount of tips.  If she does not get a 1099-K or any type of statement and does not report them on form 4137, she cannot take the deduction. 

 

[VolvoGirl]

@Neens   Just noticed you said ProSeries.  This is the Turbo Tax personal forum.   Forum for ProSeries and Accountants   https://accountants.intuit.com/support/en-us

[LLCDriver]

I'm having an issue with the calculation for tips on the Qualified Tips Smart Worksheet for Schedule 1-A, Part II. Here's what the information shows:

Line B 1 - Net Profit is entered.  

Line B 2 - Other Deductions which is the adjustments to income Schedule 1, Line 26

Line B 3 - Calculated the Net Income for the business by subtracting Line B from A.

Line C e - My tip amount is correctly enteered. It exceeds BOTH my Net Profit (Line B 1) and my Net Income (Line B 2).

Line G - TT has entered in my NET INCOME from Line B 3. It also has the box checked with an X. This amount is incorrect. It should be the NET PROFIT from Line B 1. 

What am I missing? Please advise.