PatriciaV
Expert Alumni

Business & farm

Your confusion is understandable. How you report Form 1099-K income is your choice. You can use the "amount too high" box to tell the IRS you don't agree with the income as it was reported to you (and adjust the total for sales tax). Or you can report the total 1099-K income but enter the sales tax as a business expense under business taxes. The result is the same for net business income on your tax return. 

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