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No credit for qualified tips from 1099-NEC (Doordash)

JamesCity89

Hello,

I worked for Doordash throughout the year sporadically. I have been given a 1099-NEC and but it doesn't list the tips on it. They send that and the mileage information in a separate email so we know what we can put on our taxes. It asks on the 1099-NEC form how much of the total amount shown in box 1 ($1874) on the 1099-NEC form is "qualified tips" but when I enter that amount ($1004) it doesn't give me credit for it on the schedule 1-A. It has the amount that I have left after claiming mileage and expenses related to the doordash 1099-nec. Why isn't it giving me credit for it?

I should mention this is for an amended return where I forgot to include the tips the first time on the other site. When I added it their it gave me credit for it and I entered everything here the same exact way and it isn't giving me the credit for it.

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Comments

Austyn

Hello JamesCity89,

After you've entered the 1099-NEC and included the qualified tips amount, you need to make sure you've also reported the business income under Income > Business Income (Schedule C) and linked the 1099-NEC to that section. The tip deduction line will then appear under the Summary tab within your account once everything is properly connected.

The qualified tips you enter on the 1099-NEC form need to flow through Schedule C for the deduction to calculate correctly. Without linking the 1099-NEC to your Schedule C business income section, the software won't generate the corresponding tip deduction on your return.

Since you're working on an amended return and want to ensure everything is calculated correctly, I'd recommend using the Support Tool within your account to reach out to our team. They can review your specific return and verify that all amounts are being reported and calculated properly, especially since you mentioned it worked differently on another site.

JamesCity89

https://community.freetaxusa.com/discussion/comment/6633#Comment_6633

I made sure it was linked it is checked in the income section of the schedule C linked to the 1099-NEC. I took screenshots of each section to show it's in their it just isn't flowing to the schedule C. Instead it has my business profit in that place on the schedule C.

https://ibb.co/Z6ZYj908

https://ibb.co/M5J8xs8m

MatthewD

Hi,

When you enter Tips on your schedule C from a 1099-NEC we ask you about any tips. When you report those, the tips are included as a deduction on Schedule 1-A Part II and then on Form 1040, line 13b. The deduction is not reported on Schedule C nor does it reduce your business income. Technically the tips are still subject to Self-employment tax.

JamesCity89

https://community.freetaxusa.com/discussion/comment/6665#Comment_6665

It's not showing on the schedule 1-A at all. This seems to be an issue on this site only.

JamesCity89

This is what I mean when I say it's not accounted for on my 1040 line 13b or on the Schedule 1-A part II. It's like it's not accepting that I even put the qualified tips in.

https://ibb.co/v41tc1hp

https://ibb.co/27Lxzrmc

GeorgeM

Hello JamesCity89:

Following-up on the previous posts, do you have any taxable income remaining after deducting your standard deduction or itemized deductions? If your standard deduction or your itemized deductions are greater than your adjusted gross income, then you will have no taxable income. Thus, even though you entered your tip income, your tax return will not include Schedule 1-A and neither will you see your tip income deduction on line 13b of your Form 1040.

In a previous post you mentioned that you are preparing an amended tax return to include your tip income. If you decide to follow-up with us, can you let us know what your Form 1040-X, Amended Tax Return, shows as your taxable income which will be on line 5, any net change, and the correct amount. Alternatively, it may be best if you can start a chat with one of our Tax Pros who will be able to review your tax return and provided additional guidance.

Raphness

Keep in mind the "credit for tips" is a non-refundable credit.

ScorpioUSA

I have the same problem. I reported the tips in "qualified tips" but the amount is not showing on Schedule C bottom line. And, yes, I do have taxable income.

TaxMorgan

Hello ScorpioUSA,

The tips deduction is reported on Schedule 1-A and is not included on your Schedule C. The tips are included as a deduction on Schedule 1-A Part II and then on Form 1040, line 13b.

If you have more questions about your specific situation, I would recommend contacting our support agents directly through your account, as they have access to your account information.

JamesCity89

I don't know why it didn't give me my deduction for it. I did my brothers on here and his went through no problem although his was for qualified overtime. I ended up going back to 1040 and doing an amended where it shows the qualified tip deduction on the Schedule 1-A. Surprisingly you can now also efile from that site. I just can't see paying a tax advocate on here just so they can see why it isn't giving us the deductions that are their for us.

https://ibb.co/N2x83k5z

TaxMorgan

Hello JamesCity89,

I am sorry that you did not see the tips deduction on your return. You can always contact support directly from your account (no purchase necessary), and we can look into why you are not seeing the deduction on your return. It can take longer to receive a response from us without Deluxe or Pro Support on your account, but we answer all messages sent to us.