thread Re: 1099 threshold, unable to deduct tips under Big Beautiful Bill in Reports Setup & Management

1099 threshold, unable to deduct tips under Big Beautiful Bill

jooliejewels — Mon, 16 Mar 2026 19:48:44 GMT

Many of us didn't reach the new threshold, 20,000 and 200 transactions. Square isn't legally requried to give us a 1099k. They CAN, but they wont, because its too much work for them. Now all of us who dont get a 1099k cant report our tips. As per IRS website, we must have 1099k or w-2 to report tips.

Small businesses get screwed once again. STEP UP SQUARE!!!!!

Some states have smaller thresholds.

Has anyone had success? I have over $6000 in tips between venmo and square.

Re: 1099 threshold, unable to deduct tips under Big Beautiful Bill

rtfulk — Tue, 17 Mar 2026 01:20:30 GMT

@jooliejewels I’m no tax person and this is just a thought. Couldn’t you do a Schedule C 1040 form? You could go into Square reports and filter out your tips and print that out as proof of income, you probably could do that in Venmo also.

Re: 1099 threshold, unable to deduct tips under Big Beautiful Bill

jooliejewels — Tue, 17 Mar 2026 01:53:37 GMT

Thanks for the idea, but IRS will only accept 1099k or W2. It states this clearly on the IRS webite, and there is no option to deduct tips without a 1099k on our taxes. It simply wont work.

Re: 1099 threshold, unable to deduct tips under Big Beautiful Bill

rtfulk — Tue, 17 Mar 2026 13:15:28 GMT

They don’t make it easy. I wish they would just do a straight tax and do away with filing.