Income in 1099-NEC that is also reported in 1099-K. How to remove duplicate income?

Forum|Forum|1 year ago
March 15, 2025
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This is a common question that has been asked over the years and I have read the previous topics but I still have questions, since Turbotax changes each year.

So I have a 1099K that includes some transactions that I am also reporting in a 1099-NEC.

I am aware I file the full amount of the 1099-NEC, no questions there. The problem is how do I enter the amount in the 1099K.

I can see there's a new field called "This amount in box 1a is too high or includes some personal transactions". However, I am unsure whether to use this field or not. The help item does not mention being used to handle duplicate transactions, and even says that I should contact the payer to get this fixed. For this reason, I am assuming I should not use this field.

Previous answers say I should enter a negative income to "cancel" it out. Some say this works, some say it doesn't. Other posts say to put this as an expense, which I do not believe it's accurate. So what should I do?

The payer for the 1099-k is paypal and basically i received a payment from an entity using paypal that was a bit over 600 which triggered the 1099-nec

TurboTax Premier Online

KrisD15

Yes, when you enter the 1099-K select the type of income, on the following screen use the option of "This amount in box 1a is too high or includes some personal transactions"

Enter the amount that should not be on the 1099-K

I'm sure people get tripped up on this- you are entering what should not be reported, but you enter as a POSITIVE number. (It could be tempting to enter as a negative since it is being subtracted off) but you are entering an amount that doesn't apply to your tax return.

The section for entry of Form 109-K is new since the filing requirements for Form 1099-K has changed this year and I assume will continue to change for the next few years as the IRS figures out the best way to get the form reported.

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fjleontaxAuthor

if this new field is intended for me to use to remove "duplicate" income, why doesn't the help topic say so?

also, when i enter the amount in this field, i still see the 1099k in the full amount, so unsure how i could confirm that this is lowering my taxable income somewhere.

i want to ask turbotax officially about this, but not willing to spend more on a "live" product just to get the privilege of asking for their confusing help topic

JamesG1

IRS form 1099-K income that was included in error or for personal items sold is reported on Schedule 1 Additional Income and Adjustments to Income.

In TurboTax Online, you can print or view your full tax returns prior to filing after you have paid for the software.

View the entries down the left side of the screen at Tax Tools.
Select Print Center.
Select Print, save or preview this year's return.

In TurboTax Desktop, select Forms and view Schedule 1.

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MonikaK1

If the same income is reported to you on two different tax forms, one of which is a 1099-K:

Yes, it's acceptable to handle the situation using these steps:

report the amount on the other form (such as 1099-NEC or 1099-MISC) and let it stand
enter the 1099-K
make an additional entry to back out the amount reported on 1099-K, stating in the explanation field that it's already reported on the other form.

That way, the IRS information return matching programs will find both 1099s and not assume one is missing, which could lead to a correspondence audit.

See also this TurboTax tips article and this IRS webpage for more information.

@joeltax

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