See the Terms of Service at Google - "You may only use the Service to process a Payment Transaction for a Product that is purchased from a Seller through a legitimate, bona fide sale of the Product. The Service may not be used to process a Payment Transaction, or otherwise transfer money between a Buyer and Seller, that is unrelated to a purchase of a Product." See <a rel="nofollow" target="_blank" href="
https://wallet.google.com/payments/apis-secure/get_legal_document?ldo=0&ldt=buyertos">https://wallet...>
It looks like (and the IRS will see it this way) that you agreed to use the Wallet only for business transactions...hence, the 1099-K.
