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heatherlewis0289
New Member

I received a 1099K. What PayPal states I made and what I actually made are 2 different things. If I claim what they state I made, I will owe more than I actually made.

 
2 Replies
VictoriaD75
Expert Alumni

I received a 1099K. What PayPal states I made and what I actually made are 2 different things. If I claim what they state I made, I will owe more than I actually made.

The purpose of the 1099-K is for the payment settlement entities, such as PayPal, Venmo, etc., to report credit card sales and other reportable sales transactions to the IRS. The reporting requirement is triggered when the total dollar amount exceeds $20,000 and the total number of transactions exceeds 200. Keep in mind, the IRS will receive a copy of the 1099-K, and they complete a document match. If you do not enter what is on the form, it can cause the IRS to reject, review, or audit your return.

 

If there is a dispute with the amount reported, you may need to contact PayPay to resolve and have them issue you a corrected 1099-K. You should not file the return with an altered dollar amount that does not match your tax document.

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ee-ea
Level 15

I received a 1099K. What PayPal states I made and what I actually made are 2 different things. If I claim what they state I made, I will owe more than I actually made.

Victoria did not mention the fact that you get a deduction for the cost of the goods you sell and for the expenses  paid when selling the goods. You have to do a Schedule  C with TT Self Employed software.

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