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February 6, 2020
Question

1099-MISC does't account for commission taken out of my earnings

  • February 6, 2020
  • 1 reply
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My employment agency takes a 20% commission on my earned income, but I am a model and am technically considered self-employed. My 1099-MISC shows the gross income I earned in box 7 for non-employee compensation, but this is amount I earned before the 20% commission was taken. How can I account for the 20% commission when filing my taxes? 

    1 reply

    February 6, 2020

    Enter the 20% on your Schedule C, under Commissions and Fees. The 20% will be deducted from your income.

     

    We'll automatically complete Schedule C or C-EZ when you set up your self-employment work in TurboTax or when you enter what the IRS considers self-employment income (it’s often reported on a 1099-MISC).

     

    Schedules C and C-EZ are supported in TurboTax Self-Employed (both online and in the mobile app) and in all personal 1040 versions of the TurboTax CD/Download software.

     

    To set up your business:

    1. Open or continue your return.
    2. Search for schedule c and select the Jump to link in the search results.
    3. Answer Yes to Did you have any self-employment income or expenses? and follow the instructions.
      1. If you've already entered self-employment work and need to enter more, select Add another line of work.

    If you need Schedule C to report a 1099-MISC, search for 1099-misc and select the Jump to link. Answer Yes to Did you get a 1099-MISC? and follow these directions. We'll ask questions to find out if the income needs to go on Schedule C or C-EZ and add the right schedule to your return (if needed).

    If your return only requires Schedule C-EZ, we'll generate Schedule C  for calculation purposes. It won't be filed with your return.

     

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