Sourdough 1099 guide

Cash tips count as income

Every dollar goes on Schedule C line 1, with or without a 1099

  1. Platforms report what they paid you on a 1099-NEC. Cash tips are separate.
  2. Add cash tips to your platform income before filing.
  3. Bank deposits create a paper trail. Missing them later costs more than the tax.

SourceIRC §61; Schedule C instructions Line 1

Note. General information, not tax advice. Tips reflect federal law and California rules where noted, current as of May 2026. For advice specific to your situation, consult a licensed CPA or Enrolled Agent. Sourdough Tax, Inc. is not your tax advisor unless we have explicitly accepted that engagement in writing.