When it comes to issuing a 1099-K do you issue them with the gross or net amount the 1099-k received? Meaning sometimes companies have a take rate portion before the contractor receives their portion. I have received a 1099-k in the past it shows a higher amount than what I received. What should I do in this case?
Hi maraoz_p2022, thanks for posting the question.
the gross amount of the total reportable payment card/third party network transactions for the calendar year. Gross amount means the total dollar amount of total reportable payment transactions for each participating payee without regard to any adjustments for credits, cash equivalents, discount amounts, fees, refunded amounts, or any other amounts. The dollar amount of each transaction is determined on the date of the transaction.
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Therefore, you should keep good records on what has been deducted from gross pay to be entered as deductions or business expenses on Schedule C at the time of tax reporting.
Hope the above clarifies.
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