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The same income is reported on a 1099-k (credit card) and 1099-misc

Forum|Forum|7 years ago
June 4, 2019
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A client paid by Credit Card - so the charge appears on the 1099-K supplied by the credit card processing company. However, the client also sent me a 1099-misc
This would mean I'm reporting the same income twice.

TurboTax Self Employed Online

Best answer by AnthonyC

First, the IRS only cares about total income numbers, so you should only report your total income regardless of the forms received (if you look at a Schedule C, you can see only total income is reported).

The best method to handle this situation in TurboTax so you don't double report is to report the 1099-MISC as it was reported to you and then reduce the amount from the 1099-K that you report to account for the double inclusion. A 1099-K gets reported as additional income along with cash and checks, so its simpler to just reduce this amount.

Here are the steps you can take to claim your income -

Log into your account and click Take Me To My Return (you must click this before searching if you are not already in your account)
Click the search box at the top right of your screen (magnifying glass icon)
Search for “Schedule C" in the search box
Click the "jump to schedule c" ink in the search results.
Follow the first set onscreen instructions - you might have to set up a Business profile if you already haven’t
You will arrive at the Your Business summary page where you will see the various income and expenses categories.

Then, to enter business income -

Click Start/Update next to Business Income
Click Start/Update next to 1099-MISC Income - report your income from form 1099-MISC here
Click State/Update next to General Income
The next page should be Tell us about additional income - enter your income from form 1099-K here but make sure you subtract out any overlap with your form 1099-MISC before you enter the total amount

A

AnthonyCAnswer

Employee

First, the IRS only cares about total income numbers, so you should only report your total income regardless of the forms received (if you look at a Schedule C, you can see only total income is reported).

The best method to handle this situation in TurboTax so you don't double report is to report the 1099-MISC as it was reported to you and then reduce the amount from the 1099-K that you report to account for the double inclusion. A 1099-K gets reported as additional income along with cash and checks, so its simpler to just reduce this amount.

Here are the steps you can take to claim your income -

Log into your account and click Take Me To My Return (you must click this before searching if you are not already in your account)
Click the search box at the top right of your screen (magnifying glass icon)
Search for “Schedule C" in the search box
Click the "jump to schedule c" ink in the search results.
Follow the first set onscreen instructions - you might have to set up a Business profile if you already haven’t
You will arrive at the Your Business summary page where you will see the various income and expenses categories.

Then, to enter business income -

Click Start/Update next to Business Income
Click Start/Update next to 1099-MISC Income - report your income from form 1099-MISC here
Click State/Update next to General Income
The next page should be Tell us about additional income - enter your income from form 1099-K here but make sure you subtract out any overlap with your form 1099-MISC before you enter the total amount