How do I report my manager's or agency's cut of a brand deal?
Short answer
Report the full brand deal as income and the manager's or agency's cut as a business expense, unless the agency paid you only the net amount and reported only that on your 1099.
Otavio Mayole, Co-founder, DeCypher FinancialsUpdated
It depends on how the money flowed:
| How you were paid | What you report |
|---|---|
| Brand paid you the full amount, then you paid your manager | Full amount as income, the commission as an expense |
| Agency received the full payment, paid you the net, and your 1099 shows the net | The net amount as income |
| Your 1099 shows the full amount, but you only received the net | Full amount as income, the commission as an expense, so it ties to the 1099 |
Why it matters: the IRS matches your 1099s against your return. If the numbers don't tie out, you can get a notice.
What to keep: your management or agency agreement, statements showing gross and net for each deal, and invoices for any fee you paid directly.
We categorize manager and agency fees as commissions and fees, separate from editors and other contractors, so your profit and loss shows what representation really costs you.