topic 1099-NEC form - question on reported compensation in Get your taxes done using TurboTax

1099-NEC form - question on reported compensation

hilary123456 — Thu, 28 Jan 2021 01:09:23 GMT

I'm a Realtor and thought I had a good understanding of taxes but I'm unsure on this one so I thought I'd reach out to the forum. I'm a 1099 employee, self employed.

Last year I grossed $100,000 in sales (Distributable Commission is what my brokerage calls it).

I paid the brokerage $10,000 in fees (transaction fees, Risk Management, B&O tax).

My 'Net Payable' was $90,000.

My brokerage is reporting on form 1099-NEC #1 Nonemployee Compensation to be $90,000. I would have thought it would have been the $100k and I would itemize the fees.

Are they correct in reporting the $90k (Commission after broker expenses)?

If the brokerage IS correct at reporting $90,000 - then I'm assuming I report that as well and do not deduct the $10k I had in fees, correct?

Thank you in advance for your help!

Re: 1099-NEC form - question on reported compensation

ThomasM125 — Thu, 28 Jan 2021 01:27:38 GMT

It could be reported either way, but since the broker deducted your commission already, you cannot deduct it again on your tax return. So just report the $90,000 and any other expenses that were necessary and ordinary in the business on your tax return.

Re: 1099-NEC form - question on reported compensation

hilary123456 — Thu, 28 Jan 2021 01:45:15 GMT

I ended up doing it that way after posting the question. Just thought it was a bit odd... Thank you for the help!!