Commission made on sales while employed (1099-MISC)

Forum|Forum|7 years ago
June 4, 2019
1 reply
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My spouse has two 1099-MISC forms for sales commissions/bonuses. One form is from a "partner" of the company for which he's currently employed. The other is from a company who terminated him, but it's commission on sales he made during his actual employment. When I enter the 1099s, TT puts them on Schedule C, but it's not self-employment income. That is, he doesn't have a business, nor was he considered a contractor when he earned the money. How should I file these 1099s?

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Best answer by TomD8

Commission income reported in Box 7 of a 1099-MISC is self-employment income for tax purposes, and is properly reported on Schedule C. TT is doing this correctly. The good news is that your husband can deduct as business expenses any allowable expenses he incurred in earning those commissions.

TomD8

Answer

Alumni - Champ

**Answers are correct to the best of my ability but do not constitute tax or legal advice.

heathermclemore2Author

Level 2

OK, thank you for the clarification! I doubt he kept receipts/records of any expenses at the time, but he can definitely start keeping track now. Thanks!