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eli-h-roth
New Member

I earned a 1099 as part of a performance group. The money was split 7 ways; do I need to pay tax on the entire amount, as I only actually pocketed 1/7th of it?

The 1099 was sent to me because we are not incorporated and someone had to give their SSN to the institution that paid us. I have documentation of the money being split as well. 

3 Replies
MichaelL1
Level 15

I earned a 1099 as part of a performance group. The money was split 7 ways; do I need to pay tax on the entire amount, as I only actually pocketed 1/7th of it?

You need to only pay tax on what was your share.

The issue you will have however is that IRS matches these documents to tax returns.  You should report the entire amount and then show a misc. expense and type in a narrative of the amount that was given to the other 6 members of the band. 

Your return will then have only your share taxed, and the the 1099Misc will match.

You will need to use the TurboTax Self-employed product to do this.  

BobB7
New Member

I earned a 1099 as part of a performance group. The money was split 7 ways; do I need to pay tax on the entire amount, as I only actually pocketed 1/7th of it?

But YOU may have to issue 1099s to the members if their share is over $600.
MichaelL1
Level 15

I earned a 1099 as part of a performance group. The money was split 7 ways; do I need to pay tax on the entire amount, as I only actually pocketed 1/7th of it?

That is correct, if you do it through TurboTax you will need to use the TurboTax Self-employed online software, or TurboTax Home & Business CD/download.  This same software can be used to the do the 1040 tax return.
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