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Tax Considerations (1099 Implications)

Nobody loves tax talk, but you need to know this stuff. Here's what to expect when tax season rolls around.

⚠️ This is general info, not tax advice. Talk to your accountant for your specific situation.

The Basics

LeadChuck processes payments through Stripe, which has tax reporting built in. If you earn money on the platform, the IRS wants to know about it.

  • •1099-NEC — If you earn $600 or morein a calendar year from sending leads, you'll receive a 1099-NEC form
  • •This gets reported to the IRS whether you get the form or not — so track your earnings
  • •The 1099 comes from Stripe (our payment processor), not directly from LeadChuck

What's Income vs. What's an Expense

This is the part people get confused about. There are two sides to every lead transaction:

💰 If You're Sending Leads (Earning Money)

  • •Lead fees you earn are taxable income
  • •You'll get a 1099-NEC if you hit $600+ in a year
  • •Report it as business income on your taxes (you're already a contractor — this is just another revenue stream)

🧾 If You're Receiving Leads (Paying Fees)

  • •Lead fees you pay are a business expense
  • •The 10% platform fee is also a business expense
  • •Deductible as a marketing/lead generation cost

Tracking Your Numbers

LeadChuck Earnings page showing transaction history, total earned, and payout details
  • •Your Earnings page shows everything — total earned, in hold, paid out
  • •Download your earnings history periodically for your records
  • •Keep track of lead fees paid (as expenses) separately — your lead history shows what you've spent

Common Questions

  • Do I owe taxes if I earned less than $600?

    You won't get a 1099, but the income is still technically reportable. In practice, talk to your accountant.

  • What about credits — are those taxable?

    Credits reduce what you pay for leads. They're not income. When you use a credit, it's like a discount on a business expense.

  • When do I get my 1099?

    Stripe sends 1099s by January 31st for the previous year's earnings.

💡 Pro Tips

  • •Download your earnings history periodically. It's all on the Earnings page. Don't scramble in April.
  • •Lead fees are a legit business expense.The $50 you pay for a lead that turns into a $5,000 job? That's 100% deductible as a marketing cost.
  • •Set aside 25-30% of lead earnings for taxes. You're self-employed — nobody's withholding for you.
  • •Talk to your accountant.Seriously. If you don't have one, get one. The deductions you're probably missing will more than cover their fee.

Questions about your earnings reports? Contact us.