In 2021 I made a substantial commission as an insurance agent/financial advisor for a variable annuity I sold. In 2022, the client did a 1035 exchange 9 days before the chargeback window closed and I was responsible for $43,000 chargeback commission from my broker dealer. I was considered W-2 on all annuities and insurance products and 1099 for brokerage and "financial" business. Because of the time of the original sale, I had not filed taxes for 2021 yet, paying and withholding nothing. I worked for the broker deal for a short while more and had to change BD as I was working to pay back a chargeback. All commissions (small amount) were applied to the chargeback. I left the BD as I physically couldn't afford to work for $43,000 in the negative. The home office of the BD advised they were "just not recognizing my earnings as income" to satisfy the chargeback, leaving me on the hook for taxes on $75,000 commission. I need help organizing this.
Why do I have to pay taxes on the full amount since they withheld my pay until I satisfied the chargeback?
Can I write it off as a negative business loss?
I've consulted an accountant/tax professional, but they told me to call a tax attorney.
