Attorney Referral Fee Question

I, (Attorney 1 “A1”) was a sole proprietorship who went on to work for Firm 1 (“F1”), bringing several contingent fee cases with me. Later, A1 went to work for Firm 2 (“F2”) bringing my contingent cases to the new firm with an agreement that particular cases would have a referral fee paid to F1 from A1 (not F2).

Large case settles in 2023. F2 pays my portion as W-2 income in 2023. F1 is paid their share by A1 from post-tax funds in 2024. I imagine deducting the A1 to F1 payment is the right move for A1’s 2024 filing, and further that A1 should issue a 1099 to F1. Am I over/under thinking this?

Note: A1 filed as an individual for all tax years after beginning work for F1.