The "No Tax on Tips Act" is a deduction that you claim on your personal tax return. It does not change how Stripe reports your gross payment transactions on the Form 1099-K. You will still receive this form, and the reported amount will still include your digital tips.
The Form 1099-K reports the gross amount of all payments processed through a third-party payment service like Stripe, which is the sum of the service payment plus the tip. This differs from a Form W-2, which is issued by an employer and reports your gross payment (salary plus tips). Note that the Form 1099-K is only generated if you process transactions through Booksy Payments (handled by Stripe).
Digital tips: Included in your Form 1099-K. Tips processed through Booksy Payments (which are handled by Stripe) are included in the gross amount reported on your Form 1099-K. Nothing has changed under the new law.
Cash tips (not processed via Stripe): Not included in your Form 1099-K. You are still responsible for reporting all cash tips as taxable income on your personal tax return.
Please Note: Booksy and Stripe do not provide tax or legal advice. For personalized advice, please consult a qualified accountant or tax advisor.