Message Font: Serif | Sans-Serif
No. of Recommendations: 2
Thanks for the helpful replies. I'm happy to answer Bill's question.

I had intended to add up my software sale invoices and report that as gross revenue. Payments to the developer would go under cost of goods as you said. But now I have to subtract any sales which got repoted on 1099 so my sales revenue gets chopped up and reported in two places.

But you don't. All your business is gross income on Schedule C, and should be subject to self-employment tax. So it all goes on Schedule C.

I appreciate your concern but I'd appreciate it if you didn't assume I was attempting tax fraud.

I didn't really assume it, I merely suspected it. When people get upset about getting a 1099 reporting taxable income, that's suspicious.

Print the post  


In accordance with IRS Circular 230, you cannot use the contents of any post on The Motley Fool's message boards to avoid tax-related penalties under the Internal Revenue Code or applicable state or local tax law provisions.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.