DMarkM1
Expert Alumni

Get your taxes done using TurboTax

If I understand correctly, you have a sales business.  You are selling a digital product and using an affiliate company to drive business to your product. You will enter the income and expenses for this endeavor in the "Self-employment" topic under the "Income & Expenses" tab. 

 

The affiliate commissions could be classified as an advertising expense.

 

You also may need the W9 and issue a 1099-NEC if the affiliate company is not one of these exceptions. 

 

Payments for which a Form 1099-NEC is not required include all of the following.

• Generally, payments to a corporation (including a limited liability company (LLC) that is treated as a C or S corporation). 

• Payments for merchandise, telegrams, telephone, freight, storage, and similar items.

• Payments of rent to real estate agents or property managers. 

 

[edited 2/9/2021 3:38pm]

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