I am NOT eligible for a 1099-k. . What do I report? Do I report what the third party grossed ? or what was paid to me?

[btarot]

I am A Advisor , I work on a third party network platform. I am not eligible for a 1099-k. I did NOT make more than 20,000 in aggregated gross transactions or 200 paid transactions. What do I report? Do I report what the third party grossed ? or what was paid to me?

[PeterM · Accepted solution]

You'll report the total that was paid to you minus any expenses you paid, or fees that were deducted.

If there were fees removed before you were paid, then those fees are a business expense. In that situation you would list the gross amount as income with an expense listed as "Commission Fees" or something. To do this in Turbo Tax, follow these steps...

Log into your tax return. Use the search box in the upper right hand corner. Type in "schedule c" in the box. This will bring up the "Jump to schedule c" link...click that link. From here Turbo Tax will ask you some specific questions about your business. You'll be led through a different screens asking you more questions regarding your business. You'll also be taken to a screen to enter you income. Once you enter your income, Turbo Tax will bring you to the screen for you to choose what expenses you would like to enter onto your tax return.

[btarot]

Example of one call
             Earnings Breakdown

        Call Revenue:     $24.95
  connection Fee: -$2.00
  Commission: -$9.87
 
       Your Earnings:    $13.08

Sad, I only made $13.08 off this one call.
So, do I report only what I earned?
or list the gross amount as income

Sorry, I just want to make sure I get it right.
Thank You

[PeterM]

You list the gross amount, then take the other items as expenses. So, you only pay tax on your net earnings...the total of all your "13.08's"...but its important to list everything.