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March 19, 2023
Question

Form 1099 K includes Taxes

  • March 19, 2023
  • 1 reply
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The Form 1099-K that I received from Square includes sales tax in the Gross amount of payments.  For reporting purposes, should I deduct the sales tax amount from the box 1a amount in order to get a more representative number for the amount I actually received.

    1 reply

    March 19, 2023

    Yes, you can do that.  Enter your Form 1099-K information in TurboTax Online like this:

    1. If you don’t see 2022 TAXES in the left pane, select the dropdown to the right of Income & Expenses on the Hi, let’s keep working on your taxes! page and then select Let’s get started, Pick up where you left off, or Review/Edit. 
      • Otherwise, in the left pane, select Wages & Income
    2. Scroll down and select the Show more dropdown to the right of Other Common Income
    3. Select Start or Revisit to the right of Form 1099-K
    4. Answer Yes to the question, Did you get a 1099-K? (If you've already entered a Form 1099-K, select the Add a 1099-K box)
    5. Select Type it in myself on the How would you like to enter your 1099-K? page, then select Continue
    6. On the Choose which type of income your 1099-K is for page, select the bullet next to Other (can include any taxable income not reported elsewhere on your return) OR if the entire amount is incorrect
    7. On the Let's get the info from your 1099-K screen, enter all information from your 1099-K
    8. Select the box next to This amount in box 1a is too high or includes some personal transactions
    9. Enter the appropriate amount in the Enter the amount that shouldn’t be included field, then select Continue
    10. Select Continue on the Your 1099-K summary page