nothing on line 10. Either way, you pay tax on only the $42,500; either way, the serenity of the IRS computers will be preserved.

Question: I photograph for several magazines. One magazine's 1099 form reports not only the fees they paid me during the year in question, but also includes sums that compensated me for out-of-pocket expenses. Of course this doesn't agree with my records: I don't count those payouts as expenses, since I know that I'm going to get them back -- and I don't count expense checks as income, either; it's just a wash.

Suppose I receive a 1099 form that shows $

Question: I have two agents, one for assignments and another for stock photography. At filing time, they both send me 1099 forms, and I understand that copies also go to the IRS; these show what they've sent me during the year in terms of advances, royalties, and other payments related to my books. But they do different kinds of bookkeeping!

One agent's 1099 lists the gross (full) amount she received from the publisher as my income; that is, she doesn't allow for the commission subtracted by her up front before sending a check for the balance to me. The other one handles things differently; his 1099 lists only the net (after commission) payment he actually sent to me. How should I handle these payments on my return? I know I have to report the income, but I'm not sure which figures to report!

Answer: Let consistency be your guide. The amount of income you declare should be consistent with the figures shown on your 1099 forms. Otherwise, the IRS computers might go bananas, with unpleasant consequences.

When it comes to monies you receive via an agent, what you should declare depends on whether the agent submits a 1099 form for you that shows the gross amount (total paid by the publisher) or the net amount (amount actually paid to you after the agent's commission is deducted).

If the 1099 filed by the agent lists the gross, then that's the figure you should include in totaling your income to come up with your gross on line 1 of your Schedule C -- and remember to include the agent's commission, which is deductible on the line for commissions and fees, line 10. Does the 1099 filed by the agent list the net amount? Then, you should use that amount in arriving at your gross income figure -- and you should not deduct the commission on line 10, since it's already been subtracted from the income figure.

To make it perfectly clear, here's an example. Say your agent receives a check from your stock agency in the amount of $50,000, deducts the 15 percent commission of $7500, and sends you a check for $42,500. After that year's end, you receive a 1099 form that shows $50,000. You should include the full $50,000 in your reported gross income on line 1 and deduct $7500 commission on line 10. If, on the other hand, the 1099 shows only the amount actually sent to you, $42,500, you should include only $42,500 on line 1 -- and deduct nothing on line 10. Either way, you pay tax on only the $42,500; either way, the serenity of the IRS computers will be preserved.

Question: I photograph for several magazines. One magazine's 1099 form reports not only the fees they paid me during the year in question, but also includes sums that compensated me for out-of-pocket expenses. Of course this doesn't agree with my records: I don't count those payouts as expenses, since I know that I'm going to get them back -- and I don't count expense checks as income, either; it's just a wash.

Suppose I receive a 1099 form that shows $

ly; his 1099 lists only the net (after commission) payment he actually sent to me. How should I handle these payments on my return? I know I have to report the income, but I'm not sure which figures to report!

Answer: Let consistency be your guide. The amount of income you declare should be consistent with the figures shown on your 1099 forms. Otherwise, the IRS computers might go bananas, with unpleasant consequences.

When it comes to monies you receive via an agent, what you should declare depends on whether the agent submits a 1099 form for you that shows the gross amount (total paid by the publisher) or the net amount (amount actually paid to you after the agent's commission is deducted).

If the 1099 filed by the agent lists the gross, then that's the figure you should include in totaling your income to come up with your gross on line 1 of your Schedule C -- and remember to include the agent's commission, which is deductible on the line for commissions and fees, line 10. Does the 1099 filed by the agent list the net amount? Then, you should use that amount in arriving at your gross income figure -- and you should not deduct the commission on line 10, since it's already been subtracted from the income figure.

To make it perfectly clear, here's an example. Say your agent receives a check from your stock agency in the amount of $50,000, deducts the 15 percent commission of $7500, and sends you a check for $42,500. After that year's end, you receive a 1099 form that shows $50,000. You should include the full $50,000 in your reported gross income on line 1 and deduct $7500 commission on line 10. If, on the other hand, the 1099 shows only the amount actually sent to you, $42,500, you should include only $42,500 on line 1 -- and deduct nothing on line 10. Either way, you pay tax on only the $42,500; either way, the serenity of the IRS computers will be preserved.

Question: I photograph for several magazines. One magazine's 1099 form reports not only the fees they paid me during the year in question, but also includes sums that compensated me for out-of-pocket expenses. Of course this doesn't agree with my records: I don't count those payouts as expenses, since I know that I'm going to get them back -- and I don't count expense checks as income, either; it's just a wash.

Suppose I receive a 1099 form that shows $

paid by the publisher) or the net amount (amount actually paid to you after the agent's commission is deducted).

If the 1099 filed by the agent lists the gross, then that's the figure you should include in totaling your income to come up with your gross on line 1 of your Schedule C -- and remember to include the agent's commission, which is deductible on the line for commissions and fees, line 10. Does the 1099 filed by the agent list the net amount? Then, you should use that amount in arriving at your gross income figure -- and you should not deduct the commission on line 10, since it's already been subtracted from the income figure.

To make it perfectly clear, here's an example. Say your agent receives a check from your stock agency in the amount of $50,000, deducts the 15 percent commission of $7500, and sends you a check for $42,500. After that year's end, you receive a 1099 form that shows $50,000. You should include the full $50,000 in your reported gross income on line 1 and deduct $7500 commission on line 10. If, on the other hand, the 1099 shows only the amount actually sent to you, $42,500, you should include only $42,500 on line 1 -- and deduct nothing on line 10. Either way, you pay tax on only the $42,500; either way, the serenity of the IRS computers will be preserved.

Question: I photograph for several magazines. One magazine's 1099 form reports not only the fees they paid me during the year in question, but also includes sums that compensated me for out-of-pocket expenses. Of course this doesn't agree with my records: I don't count those payouts as expenses, since I know that I'm going to get them back -- and I don't count expense checks as income, either; it's just a wash.

Suppose I receive a 1099 form that shows $

nce it's already been subtracted from the income figure.

To make it perfectly clear, here's an example. Say your agent receives a check from your stock agency in the amount of $50,000, deducts the 15 percent commission of $7500, and sends you a check for $42,500. After that year's end, you receive a 1099 form that shows $50,000. You should include the full $50,000 in your reported gross income on line 1 and deduct $7500 commission on line 10. If, on the other hand, the 1099 shows only the amount actually sent to you, $42,500, you should include only $42,500 on line 1 -- and deduct nothing on line 10. Either way, you pay tax on only the $42,500; either way, the serenity of the IRS computers will be preserved.

Question: I photograph for several magazines. One magazine's 1099 form reports not only the fees they paid me during the year in question, but also includes sums that compensated me for out-of-pocket expenses. Of course this doesn't agree with my records: I don't count those payouts as expenses, since I know that I'm going to get them back -- and I don't count expense checks as income, either; it's just a wash.

Suppose I receive a 1099 form that shows $

nothing on line 10. Either way, you pay tax on only the $42,500; either way, the serenity of the IRS computers will be preserved.

Question: I photograph for several magazines. One magazine's 1099 form reports not only the fees they paid me during the year in question, but also includes sums that compensated me for out-of-pocket expenses. Of course this doesn't agree with my records: I don't count those payouts as expenses, since I know that I'm going to get them back -- and I don't count expense checks as income, either; it's just a wash.

Suppose I receive a 1099 form that shows $2587.53, which actually includes a $2500 payment for an article and $87.53 worth of reimbursement for telephone calls. It doesn't make sense that I'd have to include the latter amount in totaling my income for line 1 on Schedule C, since it wasn't income.

Answer: Contrary to what many photographers (and other self-employed people) mistakenly believe, it's not "just a wash." This is much like the prior situation, with payments from agents; again, you should make sure your return reflects the consistency that will keep the IRS computers in a calm, unagitated state.

You should include in your line 1 total the full amount shown by the magazine, $2587.53. Then, as with the agent's commission, count the $87.53 among your deductible business expenses, since you should not be paying taxes on it.

Question: A university asked to reprint one of my magazine articles in its alumni publication. I gave permission without asking for any payment. Since this is an educational institution, can I take a charitable contribution deduction equal to the fee I would have asked of a commercial publisher? Do I need a letter from the school? If so, what should it say?

Answer: Sorry, a letter won't help. You are not allowed any deduction.