Self Employment Schedule C - 1099-NEC

[shebedo]

Husband received a 1099-NEC which included all the commissions he earned for Delivering Auto parts (he is paid by Diligent Delivery who is paid by World Pac which is the auto parts distributor he delivers for).  What is shown on the 1099-NEC is the gross amount before Diligent took out their approximate $400 in administration fees before it was deposited into his bank acct.  Can these $400 be written off of the Schedule C since his paycheck was reduced by this much and if so what should they be categorized as Fees, Commissions, Other, etc.

[quorumof1]

Hi There

1099 NEC is considered self employment income, so on form schedule C you will report all income from self-employment and also deduct all ordinary and necessary business expenses from self-employment.

[OpeA1 · Accepted solution]

Hello shebedo!

Yes, these expenses can be written off on his Schedule C. You can categorize them exactly as you described which should match what they are called - administration fees. This makes it easy to substantiate should you need to do so. As a reminder, please keep all your documentation as proof.

I hope this is helpful.

Thank you!

[shebedo]

Where do Administration Fees go, one of the prelisted categories in Home and Business or just add it to the Other section where you itemize them and they print out in detail on Schedule C

[ChelseaC1]

Yes, he can write off any ordinary and necessary expenses for his business. This article lists some common expenses for most self-employed taxpayers. You can enter the administration fee on the line for Other Expenses and write a short description.

I hope that answers your question.  Please give a thumbs up if you like the response.