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Yes, ordinary and necessary related expenses can offset the income.

@pkhadka

No, money made back from rebates and coupons is not taxable. Yes, definitely include the Form 1099-K received because PayPal did send it to the IRS, as well. If the amount on Form 1099-K was exactly the amount for money made back from rebates and coupons, then yes, it was handled properly. It is also acceptable to include other expenses for this work. If no categories seem to apply, follow these steps for any additional, related costs:

• Scroll down to Other miscellaneous expenses, scroll to the bottom of the page and click Continue. 

• Enter a Description for your offsetting amount, such as Form 1099-K Costs and Continue

If this was not business related income but personal property sales, it is a best practice to include Personal Property Sales/Cost of Personal Property in the descriptions.

@bhavanishankar