Do I need to complete a 1099 for someone I split commissions with?

[jaylaura1]

I operate a sole proprietor as a real estate agent.  We did not form a partnership because she was not a licensed agent but we worked the business as a team and split commissions.  Do I need to complete a 1099 for her?

[KittyM · Accepted solution]

Yes, especially if you paid her over $600 for her help.  1099's for 2017 were due to the IRS on January 31, 2018, so you should complete her 1099 as soon as possible.  

Please use this link to access TurboTax Quick Employer Forms:  https://quickemployerforms.intuit.com/welcomeNewCustomer.htm

[jacohn]

As  a loan officer, I had commissions paid to me on my W-2 that were split with my partner

I paid him by check and issued him a 1099 for the $6500 (his share)

In years past, this was a 1099 pmt and easy to get the funds out of net income. 

If I take it a a business expense without income it is causing the business to lose $  - leaving the full amount in the personal income section - 

How to I correctly account for the commission I paid to others and adjust my personal income?