Since I paid my contractors all via PayPal, I understand PayPal will send those contractors a 1099-MISC for totals over $600. I was told not to worry about sending them 1099-MISCs myself.
My website generated a revenue of over $20,000 (around $39k), so I am expecting a 1099-K from PayPal.
This is my first tax season of running the website. I have no idea how I should file for my income and tell the IRS that most of my income from my website (revenue via PayPal) was paid out to my independent contractors also via PayPal.
My biggest concern is that I don't want the IRS to think that the full $39,000 was fully my own income. I actually only retained about 50%.
Are those costs deductions?
I appreciate any insight.
