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Reporting Vendor Fees on Form 1099

May 20, 2025

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Q. If we charge a vendor a fee for processing an invoice, should we deduct that fee from their 1099 reportable income? For instance, if a vendor invoices us $100 for a service and we charge them $5 for processing the invoice, should the 1099 report $95 or $100? A. (Answered by IOFM's third-party tax expert) You should report the full $100 payment. 115955

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