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TupperGirl
Returning Member

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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AliciaP1
Expert Alumni

Direct Sales

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.

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1 Reply
AliciaP1
Expert Alumni

Direct Sales

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.

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
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