Ok, thanks for the info on 1099-NEC vs 1099-MISC, good to know.
The deduction in question is a fee sharing percentage that my wife pays to another franchisee who has a bigger follower base than my wife's. My wife negotiated with this other franchisee 30% of the client charges if a new client registers for classes on that other person's Zumbini webpage. 98% of the time, my that other Zumbini franchisee takes her 30% before my wife gets the balance.
I suppose either way results in approximately the same result but what does the IRS expect me to do? That is the question. What is my wife's gross? Net of fees income? Or all income including all fees paid?
