topic 1099 Deduction Question in Deductions & credits

1099 Deduction Question

canda819 — Wed, 11 Feb 2026 06:17:55 GMT

I did some work as an independent contractor a couple years ago. From that, I continue to receive 1099 Income, but I am no longer an independent contractor. Are there any business deductions or home office deductions that I can still take advantage of?

Re: 1099 Deduction Question

Opus 17 — Mon, 11 Mar 2024 18:30:46 GMT

Can you explain more? If you are receiving royalties or a commission, but are not currently performing "work", your income may be able to be taxed differently than on schedule C.

Re: 1099 Deduction Question

canda819 — Mon, 11 Mar 2024 19:12:22 GMT

Thank you for responding.

As an independent contractor, I sold a company's service that is billed monthly. I get a commission on that monthly payment as long as the customer continues with the service. I receive a 1099-NEC. I do not perform any independent contracting "work" anymore, but I continue to receive these residual payments.

Re: 1099 Deduction Question

JohnB5677 — Tue, 12 Mar 2024 14:28:17 GMT

Please clarify your question.

What do you mean by "sold a company's service"?
- Was this an outside contracting firm that hired you?
- Was this your business?
- Was this an individual company that directly contracted you as an independent worker?
Why are they paying you?
- If they contact you will you provide the service?
- Do you still do this type of work?
In general, why are you being paid for?

Please contact us again, and provide some additional details.

Re: 1099 Deduction Question

canda819 — Wed, 13 Mar 2024 23:10:44 GMT

A friend of mine has an SEO business / Social media advertising company. I brought on a few clients for him a few years ago and he still pays me a monthly commission as long as they remain clients for him. I only sold it. My friend's company provides the service. I am no longer calling on potential clients for him.

I am just curious if there are any business deductions I can claim on that income? Thank you!

Re: 1099 Deduction Question

ThomasM125 — Fri, 15 Mar 2024 03:05:45 GMT

You can deduct any expenses that are ordinary and necessary to generate the income you are receiving. However, it sounds like all you are doing is receiving money for chores done in the past, so your deductions would be minimal at best. One thing I can think of is the cost of preparing your business schedule on your tax return if you pay extra for that and it is solely for reporting the income you reference.