I have a farm store and received a 1099K from Square. When I report my income on Schedule C, Do I subtract the income reported on the 1099K from my total income (cash sales) and only report that difference on Schedule C since the credit card income is already being reported through the 1099 K?
Also, one of the transactions reported on the 1099K actually needs to be reported on my Schedule F. How do I handle that.
I'm reporting my 1099K when working on my Schedule C
The 1099-K covers your income for the amounts that you received. As long as the total amount from that 1099-K shows up on your tax return then you're doing fine. Enter it as cash received instead of entering the 1099-K then you can enter it in two places and have the total match the amount on the form. Maintain all of your records in case anyone has any questions later.
So, then, when asked if I received a 1099K, do I answer "No"?
You may answer No to receiving an IRS form 1099-K.
As @RobertB4444 states, the IRS is looking for the IRS form 1099-K proceeds to be reported somewhere on your tax return. If the IRS form 1099-K reports $5,000 in income and your Schedule C reports $50,000 in income, the IRS presumes that the IRS form 1099-K proceeds have been reported.
Retain copies of all your paperwork should a tax authority have a question at a later time.