BrooklynAcct
Level 2
01-15-2020
08:07 PM
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If I both give and receive referral fees to the same person do I issue a 1099-MISC for the net amount (if what I gave is larger), or do we both issue each other a 1099 for the gross amounts we provided each other?
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itonewbie
Level 15
01-15-2020
08:22 PM
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Unless your agreement for these referral fees stipulates that only a net amount is to be paid to the respective party periodically and that is how it's been administered, I'd say the gross amount is reportable by each.
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Still an AllStar
Still an AllStar
qbteachmt
Level 15
01-16-2020
11:46 AM
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I always recommend reporting Gross to the person, since "net" is part of Banking, not part of Service Fees. Each of you will be using Gross Income on your tax forms and Gross Expense will include the fees you paid to the other party, anyway.
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