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Retirement tax questions
Hi Terrybear4ofus!
Since the commissions are a result of your efforts to earn a regular income, I cannot come up with a rationale to say that they are not Self-employment income subject to self employment tax.
With that in mind whether your report it on schedule C or not, it is income subject to Self Employment tax. So therefore, if you have ANY ordinary and necessary expenses related to that income, it behooves you to take it as a deduction on a Sch C.
Bottom line, you have to claim the income, so I would claim whatever expenses you can related to that income to reduce your income tax.
I hope that helps!
Marty
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‎July 26, 2023
12:51 PM