Q: I have two reps. 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 assignments, advances and other payments related to my stock photography. But they do different kinds of bookkeeping!

One rep's 1099 lists the gross (full) amount she received from publishers as my income; that is, she doesn't allow for the commission subtracted by her up front before she sends a check for the balance to me. The other one handles things differently; his 1099 lists only the net (after commission) payments he actually sends 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!

A: 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 a rep, what you should declare depends on whether the rep 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 rep's commission is deducted).

If the 1099 filed by the rep 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 rep's commission, which is deductible, on line 11 (commission and fees). Does the 1099 from your rep instead list the net amount, the sum on the check actually sent to you after the agent’s commission has been taken off the top? Then, you should use that amount in arriving at your gross income figure -- and you should not deduct that commission on line 11, since it's already been subtracted from the income figure.

To make it perfectly clear, here's an example. Say your rep receives a check for sales in the amount of $6,000, deducts the 25 percent commission of $1500, and sends you a check for $4,500. After that year's end, you receive a 1099 form that shows $6,000. You should include the full $6,000 in your reported gross income on line 1 and deduct the $1,500 commission on line 11. If, on the other hand, the 1099 shows only the amount actually sent to you, $4,500, you should include only $4,500 on line 1 -- and deduct nothing on line 11. Either way, you pay tax on only the $4,500; either way, the serenity of the IRS computers will be preserved.