Can I deduct fees and commissions like I do with Uber but with a different TNC even though they sent me a 1099-MISC and not a 1099-K?

[Patrice · Accepted solution]

Yes, you can deduct fees and commissions whenever you are sent a 1099-MISC.  The 1099-MISC and 1099-K both are used to report income for independent contractors/self-employed individuals therefore you can deduct business expenses as it relates to earning the income that is reported on the 1099-MISC.

[ljdrummer5]

That is what I thought. I asked this company (Fare) I drive for this info since it was not on the 1099-MISC like Uber shows on their 1099-k. This was he response from multiple people:

"Fare gives a 1099 Misc not 1099K. . Those fees are not a valid deduction that we can claim with Fare."

"I can see the misunderstanding you have. Since TNCs in austin do it differently than Uber and LYFT. But the final amount will be the same whether you do it using 1099k way or 1099 misc way. The bottom line is, what others are saying are correct, you CAN NOT deduct those fare fees, as it was not passed on to you in the 1099 misc. It actually makes things simpler than 1099k."

And this one from someone more official in the company:

"So I did just confirm with our Finance Department. Since we provide you with a 1099 MISC you are unable to claim the Fare Fee because, we are showing you your Gross earnings which is after our fees not your Net earnings before our fees. That is why we do not show the amount of Fare Fees and Mileage."

Thoughts?

[Patrice]

If the fees are already deducted from the income then you would not be allowed to include that as a deductible business expense however since it is already excluded from the income then you don't have to pay taxes on it either.