I understand that Fiverr doesn’t send out 1099s or 1099-K’s, so I will have to just claim all my Fiverr income. But can I claim the net amount and count Fiverr’s 20% take as a deductible expense?
I’m going to be facing this next tax season, but this very question has obviously been bouncing around in my head this time around. Since the direct deposited amount is only what we get to keep after the 20% is taken out, I’m not sure it’s applicable. Banks don’t see it, and neither does the IRS… so I don’t think we can count that 20% as income; tax deductible or otherwise. I think this is a question that some TRS in the US can answer… or maybe there’s some great fellow sellers here that specialize in tax advice?
No. The 20% is not an expense.
You add up your total income after the 20% is taken out already.
If you had gotten 100% and then paid back 20% you could claim it as an expense.