tax help

[dmufeed2]

hello are tips earned by 1099 nec employee still reported as othe income even though the employer is not reporting them

[IRonMaN]

There is no such thing as a "1099 NEC employee".  Either they are independent contractors or employees.  Sounds like you might have an employee being paid by way of 1099 instead of a W-2.  In any case, tips are still earned income.

[dmufeed2]

ok so the client is an independet contractor and the company they are contracted with are not reporting this contractor tips. so my question is does he still have to report them as other income .

contractor work as a valet

[JRC]

Why would they not report?

[IRonMaN]

Whether or not someone put something on a form doesn't change the taxability of income.  If your client received the money, it is earned income to him or her.

[qbteachmt]

"are not reporting this contractor tips"

Is this what you mean: The person doing the work got paid by the customers of their contracting agent (their customer) and not from their contracted customer?

If your taxpayer truly is independent, one customer would never report what a different customer has paid them.

Example: An independent hairdresser who rents a booth at a salon, also gets leads to a senior home to work on site there, and has to pay the salon owner a commission for these sales. Meanwhile, while at the senior home, the hairdresser gets tips from the seniors.

This has nothing to do with the salon owner. These are separate customers.