Get your taxes done using TurboTax

Your friend would report the total amount that is on Form 1099-MISC. The IRS will match his Form 1099-MISC with what was sent to them. 

Your friend should contact the issuer of the 1099-MISC form to find out if the total amount includes expenses/fees.

If it includes expenses, your friend would report the total amount and deduct the expenses when he completes his business return (Schedule C or Form 1065 or Form 1120 or Form 1120-S).

Here's how to add self-employment income if you file a Schedule C (Form 1040):

1. Open or continue your return
2. Select Search, enter schedule c and select the Jump to schedule c
   • Or go to Wages & Income and select Start or Revisit next to Self-employment income and expenses under Self-Employment
3. Answer Yes to Did you have any self-employment income or expenses?
   • If you've already entered self-employment work and need to enter more, select Add another line of work
4. Follow the on-screen instructions to enter your Schedule C

Here are the self-employed expenses you can deduct and where to enter them.

If you need Schedule C to report a 1099-NEC or 1099-MISC, search for 1099-NEC or 1099-misc, then select the Jump to link. We'll ask questions about your 1099 income and generate Schedule C if your situations calls for it.

@sschiffe