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Level 1
posted Oct 27, 2021 2:20:57 PM

Independent contractor

Hi, I'm an independent contractor and the company I work with pays me and then charges a scheduling fee after the fact. For instance: $50 for an event and subtracts $2 for the scheduling fee. Is the fee considered income?

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6 Replies
Level 15
Oct 27, 2021 2:24:41 PM

Depends.   If it is included in the income like on the 1099NEC then you can expense the fee.  If you only report the net income amount you don't deduct the fee.   

Expert Alumni
Oct 27, 2021 2:27:15 PM

Hi Tawnie,

 

The deducted amounts are costs of carrying on your business and can be deducted on Schedule C. 

 

Business expenses are the cost of carrying on a trade or business. These expenses are usually deductible if the business operates to make a profit.  To be deductible, a business expense must be both ordinary and necessary. An ordinary expense is one that is common and accepted in your trade or business. A necessary expense is one that is helpful and appropriate for your trade or business

https://www.irs.gov/businesses/small-businesses-self-employed/deducting-business-expenses

 

Regardless of which expenses you discover that you may write off, the most important thing is to keep accurate records throughout the year. Save receipts, including e-mail receipts, and file or log them so you have easy access to them at tax time. Not only does keeping receipts, mileage logs, and other expense records make filing taxes easier, but it also facilitates a system that allows you to track changes from year to year.  https://turbotax.intuit.com/tax-tips/self-employment-taxes/top-tax-write-offs-for-the-self-employed/L7xdDG7JL

 

Hope this helps,

 

Ron G

Level 1
Oct 27, 2021 2:28:59 PM

Thank you!!

New Member
Mar 16, 2025 7:51:49 PM

What catagory is it under 

 

New Member
Mar 16, 2025 7:55:19 PM

I pay a fee to turn in reports to an online portal. This is a business expense, but what is it called.

Expert Alumni
Mar 17, 2025 5:22:44 AM

You can enter it as a miscellaneous business expense.  This will allow you to enter a description such as online portal fee and then the amount you have paid for it throughout the year.  

Where do I enter my self-employment business expenses, like home office, vehicle mileage, and supplies?