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Megan C
Megan C, Certified Public Accountant (CPA)
Category: Tax
Satisfied Customers: 16580
Experience:  Licensed CPA, CFE, CMA, CGMA who teaches accounting courses at Master's Level
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I am a literary manager for writers. When I receive payments

Resolved Question:

I am a literary manager for writers. When I receive payments for them I take out my commission and expenses. Do I have to send them a 1099? Or does the company paying have to send that? And is there a difference if they pay in the writer's name or to my company acting as manager for writer?
Submitted: 4 years ago.
Category: Tax
Expert:  Megan C replied 4 years ago.
Thanks for asking your question! I'm sorry to hear about your tax issue and I'm going to try my best to help you understand or resolve it.

Thank you for your question. Yes, you would send the writer a 1099 for the amount you send them. The company paying you would send a 1099 to you for the amount they send you. You would show the amount you send the writers as an expense and therefore only owe tax on your commission.

This is true if payment is made to your company. If the payment is made to the writer directly you would not send a 1099 because the company issuing payment would do that.

Hope this makes sense. Let me know if you need anything additional. If not please rate as excellent so that I may receive credit for assisting you todAy. Thanks.
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