How JustAnswer Works:

  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.

Ask Lane Your Own Question

Lane
Lane, JD, CFP, MBA, CRPS
Category: Tax
Satisfied Customers: 4490
Experience:  Juris Doctorate, CFP and MBA, Providing Financial & Tax advice since 1986
1929974
Type Your Tax Question Here...
Lane is online now
A new question is answered every 9 seconds

I have my fiance using my paypal account to receive all of

Customer Question

I have my fiance using my paypal account to receive all of the funds. She will be reporting the income on her tax form. Since the 1099 is in my name how do I report to the IRS that she will be reporting it on her tax form? Would I report the income on schedule C and then in Other Expenses note that I was acting as an agent for (Her Name and SSN) and that she will be reporting the income?
Submitted: 1 year ago.
Category: Tax
Expert:  Lane replied 1 year ago.


Hi, since the 1099 is in your name, you should be doing your own schedule c and then the profits (after you deduct reasonable business expenses) flows to your tax return on line 12.

Since there's an IRS matching program, where they will have gotten a copy of that schedule C, you're going to have to report it in one way or another.

If your fiance didn't get the 1099 from the reporting company, then she wont have to (shouldn't) report the income at all.


Hope this helps

Lane

Let me know if you have questions.


Positive feedback (or an “accept”) is highly appreciated. That’s the only way we’re paid. BUT, if you need CLARIFICATION, COME BACK here. Also, feel free to bookmark this page to come back for reference.

Customer: replied 1 year ago.

No I did not receive any of the income , she gets it, I do not want it on my tax return. She needs to report it. So how can we do this?

Expert:  Lane replied 1 year ago.


You can expenses the money to her ( would be a deduction from YOUR schedule C).

Then you should give her a 1099-misc (that's the IRS rule, if its over $600 for the year).

http://www.irs.gov/uac/Form-1099-MISC,-Miscellaneous-Income-

The reason you'll need to do it that way, is that if you received a 1099 the IRS is going to be looking to you to pay tax on that income.


But that would work.

Just be realistic about what it is that she's doing to generate the income.

Make sense?

Lane


Expert:  Lane replied 1 year ago.

 

 

 

One last thing ...

 

 

 

If you use the agent idea, it will be less of an audit flag if you take a really small commission (maybe 1 or 2 %).

 

 

Most people don't just act as a pass through for nothing.

 

 

I'm guessing any other expense at all could wipe the income out for you.

 

 

 

 

Lane

 

 

 

 

Customer: replied 1 year ago.

Well it's probably around $40,000. She is an EBAY power seller.


 


So I should expense it on the schedule C and state on it that I am acting as her agent and she earned the money through EBAY, take 1% as income on my taxes and create a 1099 for her and I would assume send it to the IRS and give her a copy right?

Expert:  Lane replied 1 year ago.


You have it Joe

That would be the completely legitimate way to do it.

AND, you probably already know this, but she can take some reasonable expenses on her own schedule C too.



Lane

Lane, JD, CFP, MBA, CRPS
Category: Tax
Satisfied Customers: 4490
Experience: Juris Doctorate, CFP and MBA, Providing Financial & Tax advice since 1986
Lane and 5 other Tax Specialists are ready to help you
Expert:  Lane replied 1 year ago.


Thanks for the feedback Joe.


http://www.internetbiztaxtips.com/2007/07/top-20-tax-deductions-for-ebay-sellers/


Lane



To ask for me again, just say … “For NPVAdvisor” … at the beginning of you question OR

Go here: http://www.justanswer.com/profile.aspx?PF=1929974&FID=20

and enter it in the question box

…pleasure working with you!

Lane


JustAnswer in the News:

 
 
 
Ask-a-doc Web sites: If you've got a quick question, you can try to get an answer from sites that say they have various specialists on hand to give quick answers... Justanswer.com.
JustAnswer.com...has seen a spike since October in legal questions from readers about layoffs, unemployment and severance.
Web sites like justanswer.com/legal
...leave nothing to chance.
Traffic on JustAnswer rose 14 percent...and had nearly 400,000 page views in 30 days...inquiries related to stress, high blood pressure, drinking and heart pain jumped 33 percent.
Tory Johnson, GMA Workplace Contributor, discusses work-from-home jobs, such as JustAnswer in which verified Experts answer people’s questions.
I will tell you that...the things you have to go through to be an Expert are quite rigorous.
 
 
 

What Customers are Saying:

 
 
 
  • I really was impressed with the prompt response. Your expert was not only a tax expert, but a people expert!!! Her genuine and caring attitude came across in her response... T.G.W Matteson, IL
< Last | Next >
  • I really was impressed with the prompt response. Your expert was not only a tax expert, but a people expert!!! Her genuine and caring attitude came across in her response... T.G.W Matteson, IL
  • I WON!!! I just wanted you to know that your original answer gave me the courage and confidence to go into yesterday's audit ready to fight. Bonnie Chesnee, SC
  • Great service. Answered my complex tax question in detail and provided a lot of additional useful information for my specific situation. John Minneapolis, MN
  • Excellent information, very quick reply. The experts really take the time to address your questions, it is well worth the fee, for the peace of mind they can provide you with. Orville Hesperia, California
  • Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help. Mary C. Freshfield, Liverpool, UK
  • This expert is wonderful. They truly know what they are talking about, and they actually care about you. They really helped put my nerves at ease. Thank you so much!!!! Alex Los Angeles, CA
  • Thank you for all your help. It is nice to know that this service is here for people like myself, who need answers fast and are not sure who to consult. GP Hesperia, CA
 
 
 

Meet The Experts:

 
 
 
  • Wallstreet Esq.

    Tax Attorney

    Satisfied Customers:

    570
    10 years experience
< Last | Next >
  • http://ww2.justanswer.com/uploads/KU/KUMI95/2013-9-30_195031_kumar.64x64.jpg Wallstreet Esq.'s Avatar

    Wallstreet Esq.

    Tax Attorney

    Satisfied Customers:

    570
    10 years experience
  • http://ww2.justanswer.com/uploads/CU/Cuttinggirl/2011-10-29_03719_wcrop2.64x64.jpg Wendy Reed's Avatar

    Wendy Reed

    Enrolled Agent

    Satisfied Customers:

    3052
    15+ years tax preparation and tax advice.
  • http://ww2.justanswer.com/uploads/CATax/2009-08-04_204548_Mark.jpg Mark D's Avatar

    Mark D

    Enrolled Agent

    Satisfied Customers:

    985
    MBA, EA, Specializing in Business and Individual Tax Returns and Issues
  • http://ww2.justanswer.com/uploads/IN/insearchoftheanswer/2013-8-16_0233_attorney.64x64.jpg Richard's Avatar

    Richard

    Tax Attorney

    Satisfied Customers:

    3229
    29 years of experience as a tax, real estate, and business attorney.
  • http://ww2.justanswer.com/uploads/MY/MyVirtualCPA/2012-7-5_44024_cookmegan1.64x64.jpg Megan C's Avatar

    Megan C

    Certified Public Accountant (CPA)

    Satisfied Customers:

    6121
    Licensed CPA, CFE, CMA who teaches accounting courses at Master's Level
  • http://ww2.justanswer.com/uploads/JG/jgordosea/2012-6-7_43138_GordosVeritas.64x64.jpg jgordosea's Avatar

    jgordosea

    Enrolled Agent

    Satisfied Customers:

    2783
    I've prepared all types of taxes since 1987.
  • http://ww2.justanswer.com/uploads/OZ/ozaukeecpa/2012-6-7_193219_Picture1croppedandshrunk.64x64.jpg MequonCPA's Avatar

    MequonCPA

    Certified Public Accountant (CPA)

    Satisfied Customers:

    2231
    CPA, Over 30 yrs experience w/individuals and small businesses. Masters in Tax.
 
 
 
Chat Now With A Tax Professional
Lane
Lane
JD, MBA, CFP, CRPS
3630 Satisfied Customers
Juris Doctorate, CFP and MBA, Providing Financial & Tax advice since 1986