If I understand your question, you have two 1099-Ks with the same income. One being reported form Whatnot and the other being reported by PayPal. The funds from Whatnot were deposited to your PayPal account and for this reason you have the income reported from each company, thereby doubling your income.
If this is true, you are not required to report income you didn't actually receive. This means you will report the income only once on your tax return. Use the income amount that is highest on your documents unless you can substantiate the total income received.
Keep all records with your tax return to show you only received the income once. Example is bank records, PayPal account showing the deposits, etc.
You also indicated this was business income from sales through the marketplace app Whatnot. If you are selling personal use items at a loss, then the loss would not be allowed and the income for these sales would not be required to be reported. Again, keep the records should you need them later.
If, however, you are purchasing items/products for resale and you are engaged in the activity to produce a profit this is self employment income. Use the link below to enter your self employment income and expenses.
Note: This IRS link will help you understand tax rules regarding: Business or Hobby?
Key elements:
- A hobby requires you to report the income you received and under the current tax law, Tax Cuts and Jobs Act (TCJA), no expenses are allowed to be used to reduce the money collected even if you itemize deductions.
- A business allows you to deduct the costs necessary to obtain the income. The law explains that 'you must be engaged in the activity to produce a profit'. The test under IRS tax law is that you must show a profit three out of every five consecutive years to be considered a business.
@jasonmelerine
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