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If the amount of her commission reported to her on a 1099 or some other form is the Gross amount before she paid back her commissions, and she included that amount as Gross Income, then she should deduct the paid back commissions as an expense or as returns and allowances.
If her Gross comission does not include the paybacks, then there is no deduction because it was never included in income. Example: Commission $10, 000 , 1099- issued for $10,000 Payback $500
Reporting: Sales $10, 000
Less: Returns: -500 (or expense)
Income $ 9500
If on the other hand, she got a 1099 for Net $9500, there would be no returns as shown above., because the $9500 already reflects the returns.
If the amount of her commission reported to her on a 1099 or some other form is the Gross amount before she paid back her commissions, and she included that amount as Gross Income, then she should deduct the paid back commissions as an expense or as returns and allowances.
If her Gross comission does not include the paybacks, then there is no deduction because it was never included in income. Example: Commission $10, 000 , 1099- issued for $10,000 Payback $500
Reporting: Sales $10, 000
Less: Returns: -500 (or expense)
Income $ 9500
If on the other hand, she got a 1099 for Net $9500, there would be no returns as shown above., because the $9500 already reflects the returns.
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