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1099 Reporting for Student Merchandise Sales: Understanding the Tax Implications
March 12, 2025
Q. A student's business merchandise is sold in our Campus Shop. Per the consignment agreement, students receive 90% of revenue from sales of their merchandise. Accordingly, would the university have to report these payments to students as taxable income on a 1099? The university provides space and operational support for the 10% of sales.
A.
(Answered by IOFM's third-party tax expert)
This would not be a type of payment requiring 1099 reporting. You are not paying for services from the student,…
Naturally, this forum doesn’t allow the kind of full information exchange necessary for the Institute of Finance & Management (IOFM) to provide legal advice and the Expert is not a tax attorney in any event. Please understand that the nature of our responses are limited by these constraints as well as the site’s Terms of Use. If you have further questions or suggestions about how we can improve IOFM, please let us know.
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