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posted Feb 19, 2023 3:31:14 PM

I am in a band. I received a 1099-NEC for the whole band. How can I show on my return that part of the money went to other band members?

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3 Replies
Level 15
Feb 19, 2023 3:34:43 PM

There is a line on Sch C where you can write in other deductions. Write something like “Income passed through to other band members “. Of course your band members will have to report their share of the income. 

Level 15
Feb 19, 2023 4:41:48 PM

to do this correctly IRS says:

 

"Nominee/middleman returns. Generally, if you receive a Form 1099 for amounts that actually belong to another person, you are considered a nominee recipient. You must file a Form 1099 with the IRS (the same type of Form 1099 you received) for each of the other owners showing the amounts allocable to each. You must also furnish a Form 1099 to each of the other owners. File the new Form 1099 with Form 1096 with the Internal Revenue Service Center for your area. On each new Form 1099, list yourself as the “payer” and the other owner as the “recipient.” On Form 1096, list yourself as the “Filer.”

Level 15
Feb 19, 2023 4:48:20 PM

Is the band a partnership?  Or a bunch of independent contractors who sometimes hang out.  If you are a partnership, that is a specific type of business and needs a specific type of tax return, even if it is not registered as a specific business structure (like an LLC or a corporation).  The income and expenses go to the partnership and the pass-through income is reported on K-1 statements.  You may want to discuss your situation with an accountant.