Can I write off my agent's 30% cut?

Question

I'm a freelance illustrator with a representative. They take 30% from every job I get. Am I able to claim this as a professional expense?

Answer 1

It depends. Typically your net income is what is taxable. Do you write them a check? If so then it's deductible. If they write you a check for the net amount of the job then no it's not deductible. You will only be taxed on your net income.

Answer 2

Yes you are - but you have to claim the entire income first. The job pays $100. The agent gets the check and issues one to you for $70. If you are only listing the $70 on your return that is the end of the story, but if you are getting a statement or are listing the $100, then your expenses are $30. and you should probably send the agent a 1099 form

Answer 3

It depends on how you are paid. Do you get the money directly, then pay your agent, or does the money go to the agent who then sends your 70% to you? If the former, then you would get a 1099 from whoever pays you and you would deduct the agent's commission. If the latter, the agent should be sending you a 1099 with his fees already deducted.