Tax

Have a tax question? Ask a tax Expert

Ask an Expert,
Get an Answer ASAP!

I am not sure if you can see the thread I started

Customer Question
with........but it has to do...
I am not sure if you can see the thread I started with........but it has to do with SE taxes on downline real estate commissions. Client retired from Keller Williams. Received a 1099-MISC, box 7. KW has a profit sharing arrangement, agents receive a piece of their "downlines" efforts after they no longer work there. I have assumed this is subject to SE tax, partly because it is in Box 7, but am questioning this and am finding mixed opinions on this. I am looking for substantial authority one way or another.
Submitted: 2 years ago.Category: Tax
Show More
Show Less
Ask Your Own Tax Question
Answered in 43 minutes by:
2/18/2016
Tax Professional: Tax-Scholar, CPA replied 2 years ago
Tax-Scholar
Category: Tax
Satisfied Customers: 89
Experience: Helping customers comply with and plan for income taxes
Verified

Hello and welcome for using Just Answers! This is an interesting question. There is conflicting case law that could support either answer. However the IRS position is that this would be subject to self-employment tax. This is a common issue for retired insurance salesmen who receive renewal commissions. In those cases the IRS has asserted this is subject to SE Tax.

Ask Your Own Tax Question
Was this answer helpful?
Ask Wallstreet Esq. Your Own Question
Wallstreet Esq.
Wallstreet Esq.
Wallstreet Esq., Tax Attorney
Category: Tax
Satisfied Customers: 586
586 Satisfied Customers
Experience: 10 years experience

Wallstreet Esq. is online now

A new question is answered every 9 seconds

How JustAnswer works:

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

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.WMatteson, 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.

BonnieChesnee, SC

Great service. Answered my complex tax question in detail and provided a lot of additional useful information for my specific situation.

JohnMinneapolis, 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.

OrvilleHesperia, 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!!!!

AlexLos 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.

GPHesperia, CA

< Previous | Next >

Meet the Experts:

Wallstreet Esq.

Wallstreet Esq.

Tax Attorney

586 satisfied customers

10 years experience

Mark D

Mark D

Enrolled Agent

1,338 satisfied customers

MBA, EA, Specializing in Business and Individual Tax Returns and Issues

Richard

Richard

Tax Attorney

4,495 satisfied customers

29 years of experience as a tax, real estate, and business attorney.

PhillipsEsq.

PhillipsEsq.

Attorney-at-Law

59 satisfied customers

B.A., M.B.A, J.D.

Robin D.

Robin D.

Senior Tax Advisor 4

15,272 satisfied customers

15years with H & R Block. Divisional leader, Instructor

Megan C

Megan C

Certified Public Accountant (CPA)

8,655 satisfied customers

Licensed CPA, CFE, CMA, CGMA who teaches accounting courses at Master's Level

jgordosea

jgordosea

Enrolled Agent

2,885 satisfied customers

I've prepared all types of taxes since 1987.

< Previous | Next >

Related Tax Questions
I received a 1099 Misc. for $$$ that went to my annuity then
I received a 1099 Misc. for $$$ that went to my annuity then I took the $$$ out so I got a 1099r for that how do I show both those on my taxes “without getting DOUBLE hit for the same amount? I've wor… read more
Bill
Bill
Master's Degree
2,278 satisfied customers
My employer used my EID on my 1099-MISC which is correct,
My employer used my EID on my 1099-MISC which is correct, but put my name instead of company's name. Do I just correct it and check the box at the top? … read more
LEV
LEV
Retired
Bachelor's Degree
14,896 satisfied customers
I received a 1099 Misc as the last payment of a settlement
I received a 1099 Misc as the last payment of a settlement where I invested in a Securitized tenant in common real estate deal and lost all of my principal. Over tje Years I have received almost 85% o… read more
LEV
LEV
Retired
Bachelor's Degree
14,896 satisfied customers
I am self-employed (1099-Misc Realtor). If my Taxable Income
I am self-employed (1099-Misc Realtor). If my Taxable Income is $0 even though my adjusted Income is $58,000, is this unusual or something that is so out of balance it could cause a red flag to the IR… read more
emc011075
emc011075
Senior Tax Specialist
Bachelor's Degree
16 satisfied customers
I received a 1099 misc. When I enter it, it says that it
I received a 1099 misc. When I enter it, it says that it indicates self-employment and wants questions answered about a business. That money was for attending union committee meetings for the year. It… read more
Barbara
Barbara
Enrolled Agent, Paralegal
5,119 satisfied customers
Client received 1200.00 but no 1099 misc, should that just
client received 1200.00 but no 1099 misc, should that just be put on line 21 with no explaination? … read more
Barbara
Barbara
Enrolled Agent, Paralegal
5,119 satisfied customers
I have a 1099 misc from Florida retirement system it was
I have a 1099 misc from Florida retirement system it was paid because my pension payments surpassed the federal limit. I am trying to file it on turbo tax the only explanation it accepts is self emplo… read more
Robin D.
Robin D.
Senior Tax Advisor 4
Vocational, Technical or Trade School
15,272 satisfied customers
A Form 1099-MISC was issued to Estate of a deceased person
A Form 1099-MISC was issued to Estate of a deceased person that was an attorney, and reported in Box 14, Gross Proceeds paid to an attorney. How is this reported on the Estate return?… read more
Cole Parker
Cole Parker
Principal/CPA
Bachelor\u0027s Degree
103 satisfied customers
I got a 1099-misc from a former employer. They reported
I got a 1099-misc from a former employer. They reported income that I earned as a result of stocks held in my name since 2007 when I was an employee. But, they reported the amount in box 7, which mean… read more
NPVAdvisor
NPVAdvisor
CFP Licensee and Practitioner
Master's Degree
180 satisfied customers
Workman comp 1099 box 6 subject to self employment tax? Are
workman comp 1099 box 6 subject to self employment tax? Are these also deductible? … read more
LEV
LEV
Retired
Bachelor's Degree
14,896 satisfied customers
Will the IRS accept a 1099-Misc as compensation as officer
Will the IRS accept a 1099-Misc as compensation as officer on an S-Corp? Client didn't need up getting payroll set up and does not have a W-2. What do I do here?… read more
Barbara
Barbara
Enrolled Agent, Paralegal
5,119 satisfied customers
I e-filed a 1099-MISC for payment to a contractor, but
I e-filed a 1099-MISC for payment to a contractor, but realized I under reported the amount. Can I file another 1099 for the balance of the under reported amount or do I have to file with the IRS for … read more
Barbara
Barbara
Enrolled Agent, Paralegal
5,119 satisfied customers
Receive a 1099-MISC for income earned when working for an
Receive a 1099-MISC for income earned when working for an HVAC company. Do I have to pay self-employment tax or can it be filed as income on a 1040 without doing a schedule C or F. It was income only,… read more
LEV
LEV
Retired
Bachelor's Degree
14,896 satisfied customers
I need help with 1099 misc that is not self emplymen. I have
i need help with 1099 misc that is not self emplymen … read more
Robin D.
Robin D.
Senior Tax Advisor 4
Vocational, Technical or Trade School
15,272 satisfied customers
I received a 1099-MISC and 1099-INT for a legal settlement
I received a 1099-MISC and 1099-INT for a legal settlement for unpaid wages with my employer. The Box 3 "other income" on MISC and in Box 1 "interest income" on the INT are the same - $955.69...how to… read more
abci168
abci168
Principal
27 satisfied customers
I recieved a 1099-misc for a deed in luie. which 1099 misc
I recieved a 1099-misc for a deed in luie. which 1099 misc do i choose … read more
Robin D.
Robin D.
Senior Tax Advisor 4
Vocational, Technical or Trade School
15,272 satisfied customers
TAX: Taxpayer received form 1099-Misc with income reported
TAX: Taxpayer received form 1099-Misc with income reported in box 7 (non-employee compensation) of $4189. The taxpayer performed services as a Substitute Teacher. Is this income reported on SCH C and … read more
Carter McBride
Carter McBride
LLM
1,060 satisfied customers
I received a 1099-MISC form from my mother's employer due to
Hi, I received a 1099-MISC form from my mother's employer due to a deferred compensation account I inherited when she passed this past year. Is a larger sum of money than I'm used to dealing with. Is … read more
emc011075
emc011075
Senior Tax Specialist
Bachelor's Degree
16 satisfied customers
Disclaimer: Information in questions, answers, and other posts on this site ("Posts") comes from individual users, not JustAnswer; JustAnswer is not responsible for Posts. Posts are for general information, are not intended to substitute for informed professional advice (medical, legal, veterinary, financial, etc.), or to establish a professional-client relationship. The site and services are provided "as is" with no warranty or representations by JustAnswer regarding the qualifications of Experts. To see what credentials have been verified by a third-party service, please click on the "Verified" symbol in some Experts' profiles. JustAnswer is not intended or designed for EMERGENCY questions which should be directed immediately by telephone or in-person to qualified professionals.

Disclaimer: Information in questions, answers, and other posts on this site ("Posts") comes from individual users, not JustAnswer; JustAnswer is not responsible for Posts. Posts are for general information, are not intended to substitute for informed professional advice (medical, legal, veterinary, financial, etc.), or to establish a professional-client relationship. The site and services are provided "as is" with no warranty or representations by JustAnswer regarding the qualifications of Experts. To see what credentials have been verified by a third-party service, please click on the "Verified" symbol in some Experts' profiles. JustAnswer is not intended or designed for EMERGENCY questions which should be directed immediately by telephone or in-person to qualified professionals.

Show MoreShow Less

Ask Your Question

x