Posted: Sat May 07, 2005 11:37 am
Hello all,
Will be starting a job soon that provides draw/financing and would like to know how this all works.
I understand that a draw is payment for advance sales and if I leave before it is paid back I owe remaining monies not covered by sales.
How does that work for your tax's?
For example-
I earn $20k in draw and $16k of that is off set by commisions earned thus leaving $4000 I owe back.
When I get my 1099 it will show I earned $20,000 yet I really earned $16K is this correct on my part?
Trying to figure out if you get taxed on income that you end up paying back.
Thank you for any and all input.
Will be starting a job soon that provides draw/financing and would like to know how this all works.
I understand that a draw is payment for advance sales and if I leave before it is paid back I owe remaining monies not covered by sales.
How does that work for your tax's?
For example-
I earn $20k in draw and $16k of that is off set by commisions earned thus leaving $4000 I owe back.
When I get my 1099 it will show I earned $20,000 yet I really earned $16K is this correct on my part?
Trying to figure out if you get taxed on income that you end up paying back.
Thank you for any and all input.