Question

1099-K

Forum|Forum|1 year ago
January 25, 2025
1 reply
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I was wondering if we need to file the 1099-K form along with the 1040 form for taxes. I heard that this form is only informational, but I also heard that IRS also receives a copy of this record. I was wondering what to do since PayPal issued me a 1099-K form. I have received some money that was incorrectly marked as “goods and services” and PayPal refuses to change it. I shouldn’t be paying any taxes for it but if I can’t get the document changed, where should I report that money? Should it be under “other income” on the 1040 form and in that case do I also need to send the 1099-K file with it to IRS? For reference, I don’t have any other 1099 documents (like 1099-MISC) other than 1099-K.

Not A Product Question

B

Bsch4477

Employee

You can exclude income that should not be taxed on the top of Schedule 1. Enter another 1099K with a negative amount.

J

jaimnichAuthor

I was wondering would excluding that income/money trigger an audit? The money is around 20k so if PayPal doesn’t change transaction status, I am not sure how else I can explain the problem legally. Would writing a letter be enough? If my 1099-K is already being sent to IRS, can I still send another one with that negative amount you are talking about?

B

Bsch4477

Employee

The IRS is well aware of the 1099K issue. Any letter accompanying your return wouldn’t be read. Just have good records in the unlikely event that the IRS has a question.