If the same income is reported to you on two different tax forms, one of which is a 1099-K:
Yes, it's acceptable to handle the situation using these steps:
- report the amount on the other form (such as 1099-NEC or 1099-MISC) and let it stand
- enter the 1099-K
- make an additional entry to back out the amount reported on 1099-K, stating in the explanation field that it's already reported on the other form.
That way, the IRS information return matching programs will find both 1099s and not assume one is missing, which could lead to a correspondence audit.
See also this TurboTax tips article and this IRS webpage for more information.
@joeltax
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