1099K From Paypal, but money already claimed on 1099-MISC

[masciajames]

Okay, so I publish books, and I get paid through some websites through Paypal. 

Each year I have a 1099-MISC from the website I publish with, but this year, I also have the 1099K from Paypal that is all the same money. 

I don't want to have to pay taxes twice on this money. There has to be a way to explain this. 

Can anyone help?

[JohnW152]

Just enter the 1099-MISC information.  You’re correct, you don’t want to enter the same income twice.

Unless there’s additional relevant information on the 1099-K, just ignore it. 

For more information, please see the TurboTax Blog 1099-MISC, 1099-NEC, or 1099-K: What’s the Difference?.

[masciajames]

Thanks. 
But if that money is being reported to the IRS... aren't they going to come looking for it if I don't enter it??? 

Also... my wife is an editor and is in the same situation... only it's about 50% of the Paypal 1099K money is already accounted for on another 1099 form. 

[JohnW152]

The IRS is aware that these "information returns" -- for example, your 1099-MISC and 1099-K -- reflect the same or overlapping dollar amounts in many cases.   

Form 1099-K reports transaction summaries, and sometimes these don't even reflect income.  Think of a 1099-K reflecting an online wedding gift registry, for example -- that doesn't include income.  The IRS is aware of this.

Form 1099-MISC is reporting the actual income the IRS is looking for, and matching its underreporter program against.  This is what you typically need to make sure is included on your return.

If there's income reflected within the 1099-K total that isn't reflected on your 1099-MISC, then that should be included in your income, as well.

For more information, please see the TurboTax Blog 1099-MISC, 1099-NEC, or 1099-K: What’s the Difference?.

[masciajames]

John...

Thank you again!

So, one more question... 
Being that this is still for the 2021 Tax Year... and both of these incomes is under $20k, and less than 200 transactions... do I even need to worry about it at all?

Thanks. 

[Vanessa A]

You do not need to worry about the form, as long as you are reporting the income that is all that matters.  The 1099K is just an informational form, not an actual form that gets entered.