1099-NEC

[schisolm]

I received a 1099-NEC from a company who took a percentage of my pay off the top. How does that get reported on the 1099? Is the 1099 supposed to show my gross or net income? If it's supposed to show my gross, how do I report the deductions on my schedule C?

[JulieS · Accepted solution]

Yes, your 1099-NEC shows your gross income, so when you file your taxes you have to list your platform fees, commissions and other costs as business expenses. This are listed under Miscellaneous expenses with a description. 

To enter your expenses:

1. Open your return. 
2. Using the search tool in the upper right, search for "self-employed expenses" and select the Jump to link in the search results
3. This will take you to the Did you have any self-employment income or expenses? screen. Answer Yes and continue through the interview to enter your expenses.
4. If you land on the Your 2022 self-employed work summary screen instead, select Edit next to your self-employment entry. 
5. Answer the  questions until you come to the Here's your (name) info page.
6. In the Expenses section, select Start beside each category to enter your expenses.
7. Select Other miscellaneous expenses.
8. You can then give a name and amount to each miscellaneous expense that you have.
9. You can group several expenses together under one name as appropriate.