Question

Groupon filed 1099 and in the total they included funds that they received

Forum|Forum|5 years ago
January 27, 2021
1 reply
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The IRS sent me a letter stating that I owe money because apparently, the amount I put on my tax return that Groupon paid me, was incorrect. I put $17.208 but Groupon put $30,200 on my 1099, which includes their fees. However, I did not receive $30,200, I received $17.208. What sections on the amendment form do I need to fill out?

LenaH

You would amend your Schedule C. You are required to put your gross earnings on your Schedule C from the 1099 that Groupon sent you. You will then be able to deduct their fees under your expenses.

Since you are most likely using Groupon to promote your business and advertise your product/services, it would be advertising expense.

When complete, there should be no tax difference once you enter the correct gross earnings and the corresponding expense.

To start the amendment on your return, please follow these instructions:

In TurboTax, scroll down to Your tax returns & documents.
Select Show.
Select Amend (change) return, and then Amend using TurboTax Online. (If you don't see Your tax returns & documents, select Tax Home on the left.)
Select the reason you’re amending and follow the instructions.