Question

1099-k form from Paypal

Forum|Forum|4 years ago
January 28, 2022
1 reply
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My kid, who just turned 18, used my paypal account to do his online resale business during the past year. I received a 1099-k form from paypal. What should I do with it?

ColeenD3

You will need to file a Schedule C to report the income and then turn around and expense it to him, so he can file his own Schedule C and report the income. Since it was not reported on a 1099-NEC, you will not need to create one for him. You can include it as a miscellaneous expense to avoid the contract labor category which would trigger a 1099-NEC being needed.

He needs to create his own Paypal account.