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Returning Member
posted Apr 1, 2023 11:32:27 AM

Direct Sales

I am in Direct Sales. When a customer orders on my website, do I record that payment as monies received, or do I just report the commission when I receive it?

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1 Best answer
Expert Alumni
Apr 1, 2023 12:23:56 PM

You need to report the amount of income you receive on your tax returns.  If the customer pays you and then you pay another company for a product, you need to report the income from the customer and your expense of the purchase.  If the customer uses your website to pay the company for the product directly and then the company pays you a commission based on that sale, your income is the commission and is reportable when you receive it.

1 Replies
Expert Alumni
Apr 1, 2023 12:23:56 PM

You need to report the amount of income you receive on your tax returns.  If the customer pays you and then you pay another company for a product, you need to report the income from the customer and your expense of the purchase.  If the customer uses your website to pay the company for the product directly and then the company pays you a commission based on that sale, your income is the commission and is reportable when you receive it.