gkacpa
Expert Alumni

Self employed

Hello @celeste567, this is a great question and very common. 

 

If you are issued a 1099-K, it is very important that you report the full amount since there will be a matching issue if you don't. 1099's of all kinds are reported to the IRS, and when you file your tax return, if it is anything less than what was reported on the 1099, you may get a notice with an adjustment. 

 

The best way to report your business portion is to report the full amount on the 1099-K, then add a separate income line to back out the personal amount. For example, if you get issued a $20,000 1099 and $5,000 of that is personal, you would report the $20,000 as income, and then do another line of $5,000 and put a description stating it is personal. If that doesn't seem to work for you, you can back out the personal portion as a "rebates and refunds" in the income section of TurboTax and put a description that indicates it is personal reimbursements. 

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