https://ttlc.intuit.com/community/tax-credits-deductions/discussion/my-wife-is-on-sales-and-after-getting-paid-on-commissions-she-had-to-pay-back-the-money-she-made-due/01/714813#M94592 Thu, 06 Jun 2019 14:32:37 GMT russell1 2019-06-06T14:32:37Z https://ttlc.intuit.com/community/tax-credits-deductions/discussion/my-wife-is-on-sales-and-after-getting-paid-on-commissions-she-had-to-pay-back-the-money-she-made-due/01/714813#M94592 Thu, 06 Jun 2019 14:32:37 GMT https://ttlc.intuit.com/community/tax-credits-deductions/discussion/my-wife-is-on-sales-and-after-getting-paid-on-commissions-she-had-to-pay-back-the-money-she-made-due/01/714813#M94592 russell1 2019-06-06T14:32:37Z https://ttlc.intuit.com/community/tax-credits-deductions/discussion/if-the-amount-of-her-commission-reported-to-her-on-a-1099/01/714819#M94595 <P>If the amount of her commission reported to her on a 1099 or some other form is the <B>Gross amount before</B> she paid back her commissions, and she included that amount as Gross Income, then she should deduct the paid back commissions as an expense or as returns and allowances.&nbsp;&nbsp;</P><P>If her Gross comission does <B>not</B> include the paybacks, then there is <B>no deduction</B> because it was never included in income.&nbsp; Example:&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; Commission&nbsp; $10, 000 ,&nbsp; 1099- issued for $10,000&nbsp; &nbsp; &nbsp; &nbsp; &nbsp;Payback&nbsp; &nbsp; &nbsp; &nbsp;$500</P><P>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;Reporting:&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; Sales&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;$10, 000&nbsp;&nbsp;</P><P>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;Less:&nbsp; Returns:&nbsp; &nbsp; &nbsp; -500&nbsp; (or expense)</P><P>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; Income&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;$ 9500</P><P> <BR /> </P><P>If on the other hand, she got a 1099 for&nbsp;<B> Net&nbsp; &nbsp;</B>$9500,&nbsp; there would be no&nbsp; returns as shown above., because the $9500&nbsp; &nbsp;already reflects the returns.&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;</P> Thu, 06 Jun 2019 14:32:38 GMT https://ttlc.intuit.com/community/tax-credits-deductions/discussion/if-the-amount-of-her-commission-reported-to-her-on-a-1099/01/714819#M94595 kerriP 2019-06-06T14:32:38Z