Hi, I have a trucking business and have received a 1099-NEC form. I hired a dispatcher to get me workloads, and he took a 7% cut. Do I file gross or net pay?

For sake of conversation, we'll use $1000 as gross income. On my 1099NEC form, box 1- Nonemployee Compensation is $1000. The dispatcher would take 7% of total earnings per workload/trip. What I actually earned was $930. Which amount do I file?

890

Expert Alumni

Feb 8, 2023 1:23:16 PM

You must enter the gross amount as shown on your 1099-NEC.

You then claim as business expenses (for example under Commissions) the 7% retained by the dispatcher.

Level 1

Feb 12, 2023 9:00:14 PM

Thank you!

Why sign in to the Community?

Hi, I have a trucking business and have received a 1099-NEC form. I hired a dispatcher to get me workloads, and he took a 7% cut. Do I file gross or net pay?