I've been getting my 1099s from various networks, and it seems like some of them report the income in box 3 (awards and other income) and some in box 7 (non employee compensation). Running my numbers through turbo tax it seems like the tax liability is less for box 3 income.
Does anyone have any insight into why some networks would use box 3 and others would use box 7? In reading through the IRS publications (and I'm neither a lawyer nor accountant) my interpretation is that affiliate marketing commissions should probably be reported in box 7. Thoughts?
Does anyone have any insight into why some networks would use box 3 and others would use box 7? In reading through the IRS publications (and I'm neither a lawyer nor accountant) my interpretation is that affiliate marketing commissions should probably be reported in box 7. Thoughts?