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posted Apr 14, 2019 9:00:55 PM

Dog Walking service independent contractor deductions

As an independent contractor dog walker with Wag Labs, I receive 60% of the fee Wag charges clients for their dog walking services. Does that mean that Wag takes a 40% "finder's fee" or "agency commission" that I can deduct on my taxes on the 1099 Misc Income form they report to the IRS? This would be a fee I would pay to use their Dog Walker app in order to find clients and for them to process all of the payments.

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1 Replies
Expert Alumni
Apr 15, 2019 7:03:15 AM

You can only deduct what you actually paid. So if you paid that 40% fee, you can deduct it. 

When you file your return, you enter all the money (received through the 1099-MISC or otherwise) on the return to report your gross income. Then you enter all the expenses that you paid to arrive at your net income. So, you paid that fee, you can deduct it.