I'm a sole proprietor of a tutoring business. I use an online platform that contains specialized lessons and practice games for dyslexic children, and keeps records of my notes and the students' progress. The platform is created and managed by a company I'll call "Dyslexia Inc." Another tutor who uses Dyslexia, Inc, who I'll call "Mary," does outreach and marketing to find students for Dyslexia, Inc, and she assigns some of the students to me. Each time a student pays for my tutoring services, they pay Dyslexia, Inc, who then takes out a platform fee, and pays Mary a comission for finding the student. This commission continues forever, every time a student pays for my tutoring services. Mary's business issues monthly paychecks and a 1099 for me. Can I claim the fees and commission that Dyslexia, Inc, and Mary earn as a business expense? Or is it more like Mary is my client, she pays me a fee for services I render, and the rest is none of my business (no pun intended)?
