I had an fellow agent ask me who is in his first year in the business ask me will chargebacks be reflected on his 1099. I said I imagined it would be but I haven't had taken advances in 6 years. He shouldn't have to keep tract of his chargebacks to give to his tax guy because its reflected on his 1099.
Chargebacks
- Thread starter SamIam
- Start date
- 10,276
I would think that if you made 100k and they took away 20k...you will show 80k of income on the 1099.
Just a guess.
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Redhawks play tonight!
Just a guess.
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Redhawks play tonight!
- 14,809
Depends on when. Yes and no for the current tax year. If an agent is advanced $6,000 in January and $2,000 blows back in April then gross income is reflected as $4,000 for tax purposes.
However, if business is advanced in November 2011 and charged back January 2012 of the following year it won't reflect on the 2011 1099.
However, if business is advanced in November 2011 and charged back January 2012 of the following year it won't reflect on the 2011 1099.
- Thread starter
- #4
Correct me if I'm wrong John but then it would reflect on the 2012 1099 correct?
- 14,809
Yes, it would show for 2012. I mention that because I know a few agents who have not liked chargebacks hitting in Jan and Feb yet owing the gross advanced total for the previous year - having to wait until the next tax year for it all to come out in the wash.
