Transamerica Incorrect 1099???
- Thread starter Turbo3.8
- Start date
- 30,147
- 19,448
Maybe what you are seeing doesn't include chargebacks? Or it could be that they report only the earned monies as some companies do. That would make your 1099 less in some years that what you were paid and more than what you were paid in other years.
My accountant turns my 1099's but I pay taxes on what I was actually paid. Because of companies different accounting some years I report more income than my 1099's show. Some years it's less. Last tax year there was a $6000 difference in actual income vs my 1099's. The 1099's showed more income.
This year it looks like my 1099's are less than what I was paid. Haven't gotten them all yet but I have an idea what's on the ones I haven't gotten.
- 19,448
No, I don't file as a corporation. I haven't always filed the way I do now. I used to use the 1099's and separately track chargebacks. I had to change accountants a few years ago because my guy retired. The new accountant said this is how it should have done all along so I changed. Took a couple years to get the systems all in order.
I can't believe the irs hasn't sent you a letter when your 1099's don't match up with the income you report. Lets say last year your 1099's were $200k and you're as earned was only $180k. I know it evens out over a 2 yr period but anytime I haven't reported at least what the 1099's have said the irs will send a letter. how have you gotten around that?matter of fact I wrote with about 18 co's this yr and I bet 70% 1099'ed me me on the whole advance I received.How does your accountant handle if you wrote 1 policy with a company in November and got paid $2k and it lapses in febuary and you get charged back $1600 an write nothing else with that company? The company 1099'ed you the $2k but you never earned it all.
- 6,134
Last night you were looking for an old American contract. Just see if they will w2 you now that you will be captive and you won't have to worry about it.
That is how I do it...and it makes 1099's irrelevant.
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Because the company paid you the whole advance. Your "actual" payment from the carrier was paid to you. The $2k got deposited in your account, that is income. If it chargedback you would have just wrote another policy to make up the difference of the lost $1600. Say you wrote another policy and advance was $1800 less the $1600, they pay $200. So at that point you would have $2200 show up on your 1099..if that were the only 2 policies you wrote. Make sense?
- 11,280
How do you keep track of your deposits?
- 969
Income is shown on tax return, but in the deductions there is a deduct for "chargebacks". 100% Deduct off the top.
