I get paid via credit card from a 1099M source. That income gets processed via Square and gets reported on the 1099K.... twice. What do I do?

Forum|Forum|2 years ago
February 6, 2024
1 reply
0 views

This money come from a health care provider (Like Blue Shield) for services rendered, but the only way to process is via Square which also gets reported on 1099K (over $20K)

TurboTax Online

Best answer by Vanessa A

Since you are an independent contractor, you would be filing a Schedule C. You can choose to just report your income and expenses from your records and not include the 1099's on your return.

Or, if you prefer, you can enter both of them and then you can back out the 1099-K but then you will make an adjustment to your income and back it out. To do this in TurboTax you will take the following steps:

Click federal wages and income
Show more next to Other Common Income
Start next to 1099-K
Select Other for what type of income
Enter the info from your 1099-K
Select "This amount in box 1a is too high or includes some personal transactions"
Enter the amount that should not be included (which would be the full amount)
Hit continue
This will have the amount removed from your income so you are not double taxed.

Vanessa AAnswer

Since you are an independent contractor, you would be filing a Schedule C. You can choose to just report your income and expenses from your records and not include the 1099's on your return.

Click federal wages and income
Show more next to Other Common Income
Start next to 1099-K
Select Other for what type of income
Enter the info from your 1099-K
Select "This amount in box 1a is too high or includes some personal transactions"
Enter the amount that should not be included (which would be the full amount)
Hit continue
This will have the amount removed from your income so you are not double taxed.