I have a 1099k from PayPal for money made back from rebates and coupons. Is it taxable?

Forum|Forum|7 years ago
June 5, 2019
2 replies
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DawnC0

Level 12

Per the IRS, cash rebates from a dealer or manufacturer for an item you buy generally not taxable. If you received a 1099-K, it reflects gross income received for this activity and needs to be reported since the IRS has received the document also.

You should enter the 1099-K in TurboTax (see below) and add a separate line item with a negative amount that represents the rebate and coupon income that is included on the 1099-K. You can essentially enter 2 line items in the ''Additional Income'' section, one as a positive number for the full amount and below it an offsetting negative amount for the total of the manufacturer incentives received. Image attached.

Here is how to enter your 1099-K. https://ttlc.intuit.com/replies/5108144

https://turbotax.intuit.com/tax-tips/irs-tax-return/video-are-cash-back-rewards-taxable-income/L1FWH...

bhavanishankar

Level 2

I am unable to enter negative value in the field. Is the solution still valid?

PattiF

Level 15

Here is how you would delete that from self-employment income in TurboTax Online:

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pkhadka

Level 2

So you just add one line with your income and another line with negative value in Miscellaneous income section and good to file?

DawnC

Level 15

Yes, if you receive a Form 1099-K reporting non-taxable payments (e.g. coupon redemption, cash rebates, casual sales of personal property at less than your cost), you can report it in the Other Reportable income interview.

However, if this was income was business income or hobby income, it is taxable and should be reported as business or hobby income. The non-taxable method is only for the types income listed above.

It is either business income, hobby income or the sale of personal items (garage and yard sale type income).

A Tax Filing Factsheet for eBay Sellers @pkhadka

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