Re: Should 1099 Box 7 Include Fees Deducted by the Payor for Payment Processing
Quoting Bubba Jimmy
If they were compensating you for something you did for them (posting links for their company) and you are not their employee, then what you received was non-employee compensation. If you had expenses, such as the 3% fee, then deduct them on your Schedule C along with any other expenses you incurred to make this money.
Thanks for replying. I don't want to raise any red flags with the IRS, so I'm not sure if I'll take the 3% deduction for the bank fee.
Re: Should 1099 Box 7 Include Fees Deducted by the Payor for Payment Processing
there is no reason that should raise any red flags. bona fide business expenses can and should be deducted, why pay income tax on income that wasn't really income because it was spent on earning that income?