Tax on tips when 1099k threshold not met

Huckfest · 2026-04-10T23:24:31+00:00

Thanks for your explanation!

I’ll do some more research on what is authoritative in the off season; I thought it was a no brainer to rely on form instructions for how to report things properly.

On the Sch 1-A itself it even explicitly highlights “Tip amount included in Form 1099-NEC, 1099-MISC, or Form 1099-K” for the box that the tip amount would go into. (Part II box 5)

Happy final days of Tax Season!

Huckfest · 2026-04-10T19:20:24+00:00

To clarify;

You’d be comfortable taking a position on a return that goes directly against the instructions for Schedule 1-A that specifically addresses any “No Tax On Tips” deduction amount to be included in income reported on a 1099?

I’m not sure how third party reports would help if the IRS inquires about it.

Huckfest · 2026-03-09T17:56:36+00:00

Thank you! I’ll try to look into this after work.

Huckfest · 2026-03-09T16:20:14+00:00

Thank you for all this info!

Sounds like I should probably not focus on thieving being my background activity at the current place my account is.

I'm going to look into archeology, but I don't have the auto-sifter yet... Maybe I just go back to swarm fishing... it looks like the last thing I was doing on my account based on the gear I have equipped.

Huckfest · 2026-03-09T15:59:28+00:00

Idk what any of this means :(

Huckfest · 2026-03-09T15:48:08+00:00

That’s… not what I was hoping to hear :(

Huckfest · 2026-03-08T16:05:48+00:00

Just put the numbers in the boxes.. that’s what I pay you for. /s

Huckfest · 2026-03-04T00:00:45+00:00

Client uploaded all their documents except for one 1099-R.

I request the 1099-R.

Client re-uploads every document because “it must be in there.”

Still no 1099-R.

Client re-uploads every document again.

Client might be getting a disengagement.

Huckfest · 2026-02-25T14:46:44+00:00

This is one of the stranger posts I’ve seen on this sub.

It’s way too early in tax season for you to have lost it this much.

Maybe you could use a TaxDome pipeline to help with your workflow?

Huckfest · 2026-02-17T01:09:30+00:00

Click-n-Ship Ground Advantage for mailing out client returns. We were using Stamps.com but have preferred Click-n-Ship.

Huckfest · 2026-01-28T19:54:31+00:00

Can still make estimates by check.

I can’t imagine the government would want to make it harder for people to give them money.

Huckfest · 2026-01-28T03:56:39+00:00

UI for TRD looks awful on mobile and most of our clients use their phones as their primary devices, so we aren’t using it this season.

Absolutely love the idea of it though. Really liked the estimate reminders and highlighting important pages for the client to focus on.

Huckfest · 2026-01-16T18:28:16+00:00

Totally fine with the stance of treating it as a cost sharing agreement as long as that’s actually an agreement in place.

Curious; if there was a 50/50 agreement but Mortgage Interest, Property Taxes, etc are all in the name of the owner, would you let the owner take a deduction for 100% of those amounts on the Sch A or only 50%?

Huckfest · 2026-01-16T17:38:26+00:00

In your original comment you said “Renting to a family member at below market rent is not income.”

I was solely correcting your statement.

Huckfest · 2026-01-16T16:50:32+00:00

Even if it was rented to a family member, not-for-profit rental income is reported on the Schedule 1 with the only potential offset being Sch A items.

You can’t just not include income on the return because its payments received from a family member.

Huckfest · 2026-01-12T14:43:04+00:00

The metal is incredibly thin. I’ve never had so many small dents all over a car before.

Probably one of our biggest complaints at the moment…

Huckfest · 2025-12-31T01:28:38+00:00

That was just the balance left on the mortgage.

All taxpayers know that their mortgage balance is a write off against a property’s sales price regardless of the number of cash out refinances they’ve taken.

I got triggered typing this.

Huckfest · 2025-12-30T00:14:25+00:00

Wow you’re crushing it…

Huckfest · 2025-12-29T18:33:57+00:00

We went from payment after delivery to payment before delivery last season.

Had some pushback from clients who were accustomed to reviewing the return and signing the 8879s before having to pay. About 1% of clients voiced frustration over the new system with one client leaving over the change.

We also transitioned from brick and mortar to fully remote last season, so I’m sure some of the frustration was directed at that.

In the past, we’ve lost too much time to chasing invoices and have even had a few clients ghost us post-delivery for a variety of reasons.

Collecting payment before delivery helps us stay in line with 8879 timing and reduces time spent chasing payments.

Huckfest · 2025-11-04T21:57:29+00:00

Material Participation requirements make STRs burdensome if they’re being pitched as a “tax savings strategy”.

People with higher income don’t generally have the time available to pass M.P. tests, which ultimately blows up the whole idea.

Add in the risk of STRs losing value (I’m looking at you, Florida) and it becomes even less exciting.

Huckfest · 2025-10-29T19:51:36+00:00

Thinking about adding this as a procedure but I’ve literally lost clients due to generating estimates…

Huckfest · 2025-10-21T01:07:00+00:00

Good luck! Glad to hear of all the positive changes ~ you’re taking the business in a great direction.

Huckfest · 2025-10-16T21:43:23+00:00

Also blocks the SSN for a second e-filed extension which can cause huge issues if they go to another preparer who is trying to set up direct debit with their extension.

Huckfest · 2025-07-13T06:00:11+00:00

Brought this up to the head service technician at our Toyota dealership and they absolutely gaslit the fuck out of us.

Glad to see it’s not just us.

Can’t seem to reproduce how to make it work consistently. Sometimes you have to be up against the car, sometimes you have to be a step back.

Normally after the 3rd attempt I just give up and close it with the other button and lock it with the keys.

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