1099's

[TDFnCali]

Ok this is my 1st yr doing insurance, so maybe Im missing something. I've been doing taxes with 1099's for the last 10yrs, always been independent contractor basically...but this has got me stumped!

I have a spreadsheet where Ive kept track of every dollar for my insurance biz....income & expenses, broken down monthly. But my 1099 income is not matching what I have, not even close! My 1099 is about 55-60% of what I actually got paid....so what gives? What am I not accounting for?

Please help me with this....

 

[pcbinsurance]

Perhaps they are not accounting for the advances?

 

[Bozack23]

This is my first year selling FE so no 1099's yet but I was wondering since the advance is not "earned" and could be charged back would the total amount advanced show on a 1099?

 

[captain94]

Ok this is my 1st yr doing insurance, so maybe Im missing something. I've been doing taxes with 1099's for the last 10yrs, always been independent contractor basically...but this has got me stumped!

I have a spreadsheet where Ive kept track of every dollar for my insurance biz....income & expenses, broken down monthly. But my 1099 income is not matching what I have, not even close! My 1099 is about 55-60% of what I actually got paid....so what gives? What am I not accounting for?

Please help me with this....

They only 1099 you for earned commission since the advance is a loan. I know RNA does it this way. My accountant writes the diffrence from my deposits to 1099 off as a loan.

 

[Jerard]

Ok this is my 1st yr doing insurance, so maybe Im missing something. I've been doing taxes with 1099's for the last 10yrs, always been independent contractor basically...but this has got me stumped!

I have a spreadsheet where Ive kept track of every dollar for my insurance biz....income & expenses, broken down monthly. But my 1099 income is not matching what I have, not even close! My 1099 is about 55-60% of what I actually got paid....so what gives? What am I not accounting for?

Please help me with this....

TDF, would you consider sharing a blank copy of your spreadsheet? I would be curious to see if yours is better than mine.

 

[Agentguy5]

All insurers report ONLY earned income, NOT advanced... Next Year you get to pay full taxes!!!

 

[jdeasy]

All insurers report ONLY earned income, NOT advanced... Next Year you get to pay full taxes!!!

Not all. Some report what they paid regardless if it was earned or advanced. Most report only the earned. Some report the net after chargebacks. Some report gross and you have to keep track of the chargebacks.

 

[Agentguy5]

WOW, sounds like I lucked out... All 8 of the insurers that I wrote business with last year gave me 1099's with Earned only... What FE insurers do it by Net of After Chargebacks?

 

[jdeasy]

WOW, sounds like I lucked out... All 8 of the insurers that I wrote business with last year gave me 1099's with Earned only... What FE insurers do it by Net of After Chargebacks?

RNA claims they report only as earned and chargebacks are already taken into account. I can't make their numbers match no matter how I figure it.

When I used to write LH they would send the 1099 but also a end of year report with the chargebacks and lead costs listed on it.

The ones that really muck things up are some of the companies that I am completely as earned with. There should be no discprepancies there. I have one where I'm totally as earned and have been for 4 years so no carry over from last year or any other year. The 1099 is $25000. I have record of chargebacks of about $2000 with them. I was actually paid $20000 by that company. They can't explain it. I can't explain it and my accountant can't figure it out.

I have about 8 companies with significant 1099's and it seems that every single one of them figures commissions differently. I have a handful of others that pay me anywhere between $400 and $1200 for the year. We just use the 1099 for those and don't question them.

My accountant said last week, "it seem these companies don't want the agents to be able to figure their pay out". No kidding. I've said the same thing for years.

 

[gordon112]

RNA claims they report only as earned and chargebacks are already taken into account. I can't make their numbers match no matter how I figure it.

When I used to write LH they would send the 1099 but also a end of year report with the chargebacks and lead costs listed on it.

The ones that really muck things up are some of the companies that I am completely as earned with. There should be no discprepancies there. I have one where I'm totally as earned and have been for 4 years so no carry over from last year or any other year. The 1099 is $25000. I have record of chargebacks of about $2000 with them. I was actually paid $20000 by that company. They can't explain it. I can't explain it and my accountant can't figure it out.

I have about 8 companies with significant 1099's and it seems that every single one of them figures commissions differently. I have a handful of others that pay me anywhere between $400 and $1200 for the year. We just use the 1099 for those and don't question them.

My accountant said last week, "it seem these companies don't want the agents to be able to figure their pay out". No kidding. I've said the same thing for years.

It makes is more difficult to budget for taxes when you really have no idea what your base is. I guess all we can do is keep track of those important expenses for deductions and factor in advances and as earned amounts.

I have always used the software programs like turbo tax, but it brings into question if I was overpaying or underpaying taxes due to the different ways of reporting income by the companies.