Independent Contractor Income, and Business Deductions

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Latest post Thu, Feb 9 2017 9:57 PM by Taxagent. 1 replies.
  • Thu, Feb 9 2017 6:45 PM

    • TR28
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    Independent Contractor Income, and Business Deductions

    I have two careers: 1) I am actor in the film industry, and 2) I work as a staff member at various events (trade shows, mall promotions, etc.).

    I am paid as an independent contractor in both careers.



    In 2016, my talent agent got me two acting jobs. For each job, I was paid $200, and I had to pay 10% of the $200 to the agent as a commission. For each job, the agent received a $200 check, and then sent me a check for $180.

    On the Schedule C form for my acting career, what do I list as my gross income from these two jobs (Schedule C, line 1)? Do I list $360 (the amount I received after the agent took the commission)?

    Or do I list $400 (the pre-commission amount)?

    If I list the pre-commission amount, do I deduct the commissions as business expenses (Schedule C, line 10, commissions and fees)?



    In my event-staffing career, one employer paid me via a third-party pay platform called Workmarket (www.workmarket.com). The employer sent money to my bank account electronically, via the Workmarket platform. The employer took 1% of my earnings as a "Workmarket fee".

    For example, if one job paid me $17 per hour for 6 hours of work, my pay would be $102. After the 1% Workmarket fee, I would get $100.98. The $100.98 (after-fee amount) is what would be sent to my bank account. The invoice on the Workmarket website stated that my total pay was $100.98. The "Workmarket fee" was not mentioned at all.

    So, on the Schedule C form for my event-staffing career, what would I list as my gross income from this Workmarket job (Schedule C, line 1)? Do I list the post-fee amount of $100.98? Or, do I list the pre-fee amount of $102, and then deduct the fee as a business expense (Schedule C, line 10, commissions and fees)?


     
    Thanks in advance for any information.




  • Thu, Feb 9 2017 9:57 PM In reply to

    Re: Independent Contractor Income, and Business Deductions

    TR28:
    Or do I list $400 (the pre-commission amount)?

    If I list the pre-commission amount, do I deduct the commissions as business expenses (Schedule C, line 10, commissions and fees)?

    Yes to both. The $400 was income you earned and you paid the agent his/her commission. This was not an instance where you worked for the agent and he or she paid you $360 for your work. 

    TR28:
    So, on the Schedule C form for my event-staffing career, what would I list as my gross income from this Workmarket job (Schedule C, line 1)? Do I list the post-fee amount of $100.98? Or, do I list the pre-fee amount of $102, and then deduct the fee as a business expense (Schedule C, line 10, commissions and fees)?

    The latter, for the same reason as with the acting jobs. 

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