I reported Rover Income under 1099K but where do I report the fee that went to Rover i.e. Schedule C?

Forum|Forum|2 years ago
January 31, 2024
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Best answer by AnnetteB6

Yes, the fee that was taken out of your income reported on Form 1099-K is considered to be a business expense. You can enter it under the Miscellaneous business expense category where you can enter a description for the expense and then the amount.

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nobilitat1

Rover also includes cancelation amounts in total income earned which is a false representation of earnings.

For example (in round numbers):

Rover 1099-K reports $2600 (1a) for gross payments.

Summary report shows $300 in refunds which were cancelations.

Summary report shows $400 in fees (Rover's earnings).

Bottom line for actual earnings is $1900. To me that is what needs to be reported as taxable income. Does Rover pay taxes on the commissions they take???? I'm not feeling good about this.

DaveF1006

The refunds and fees can be listed as expenses in your return and are legitimate expenses. The commissions claimed by Rover is taxable income when they file their corporate returns.

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