I've mistakenly used goods and services when receiving money from PayPal multiple times from the same person, even though I did not sell anything,now I got 1099-k.

Forum|Forum|1 year ago
January 29, 2025
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I've mistakenly used goods and services when receiving money from PayPal multiple times from the same person, even though I did not sell anything, now I got 1099-k.what should I do? I have $21000 total gross,

Best answer by KrisD15

You can adjust the taxable amount of income on Form 1099-K but you also need to keep documentation of what the transactions were if not income.

If the 21,000 represents gifts from one person, that person should also file a "Gift Tax Return" although that would not be your responsibility.

KrisD15Answer

You can adjust the taxable amount of income on Form 1099-K but you also need to keep documentation of what the transactions were if not income.

If the 21,000 represents gifts from one person, that person should also file a "Gift Tax Return" although that would not be your responsibility.

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Sarahjane012120Author

Thank you for answering, it's from Family- but the thing is they are from internationally and they don't file taxes.

MinhT1

When you receive form 1099-K, certain items may not be taxable.

Depending on the circumstances and the nature of the non-taxable items, the way you exclude them from your tax return may be different.

Please read this IRS FAQ to find how to deal with these items.

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Sarahjane012120Author

the transaction is international and they don't do tax every year on where it came from. what to do? and how to file it?

LeticiaF1

Even if the money came from another country and you don't need to file a return from where it came from, you must report it on your US return since you got a Form 1099-K. Follow the steps provided by KrisD15 to enter this on TurboTax.

@Sarahjane012120