What do I do if a 1099 K overlaps with a 1099 MISC?

Forum|Forum|6 years ago
June 6, 2019
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I received payment through PayPal that showed up on my 1099-K. I also received a 1099-MISC from two clients that paid through PayPal. How do I report it without it duplicating?

TurboTax Self Employed Online

AnthonyC

Employee

You only enter your total income regardless of the breakdown between the forms. In TurboTax, income from a 1099-K is included in general income as the form itself is only used to report credit card and third party transactions. However, there is a specific entry for income for a 1099-MISC. So, if the two overlap, then you enter the 1099-MISC income in full and reduce your general income (1099K) by that amount.

Example: You have $9,000 in income. You have a 1099-MISC for $5,000, but you also have a 1099-K for $5,000 of which there is a $1,000 overlap with your 1099MISC income. You would enter the 1099-MISC as reported for $5,000. You would then enter only $4,000 under general income. This way you are only reporting your true income of $9,000.

If you need navigation instructions for entering both of these incomes -

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)
Type “Schedule C" in the search box, top right of your screen, then click the magnifying glass
Click the "jump to schedule c" ink in the search results.
Follow the onscreen instructions - you will have to set up a Business profile if you already haven't
You will arrive at the Your Business page where you will see the various income and expenses categories.

To enter business income for both of these items, follow the above instructions, then:

On the Your Business page, click Start or Update next to Business Income
Click update next to 1099-MISC and enter the income from this form
Click update next to General Income and enter the remaining income (form 1099K minus amount already reported plus any other income you have)

skyfall1

hi, I am a bit confused about 1099K. Most of my income is by credit card and all is reported to 1099K. I entered all my 1099NEC ($1000) and 1099K($900). My gross income is $1900. How do make this right?

LeticiaF1

You must report all income you receive on your tax return. That includes Forms 1099-K, 1099-NEC, and 1099-MISC, and also any cash, property or goods you received that were not reported on a form. If the amounts are duplicates then you can expense the duplicate amount on your Schedule C (Self-employed profit or loss), as Other miscellaneous expenses. For the description, put in "1099 income reported twice" and then enter the amount of the duplicate income.

If you would like more information about 1099K click here.