Hello
I hope your day is going well. I see you are wondering if you can write off expenses against the income reported on your 1099-K. The short answer is yes assuming they meet the IRS definition of ordinary and necessary costs incurred to operate your business. While there may be others, here are some potential 1099-K deductions:
- Web hosting fees: If you have to pay an annual web hosting fee for your online shop on the web, you can deduct this.
- Credit card or merchant processing fees: If you pay the credit card company processing fees, these can be deducted.
- Internet access: Internet access for your established business entity can be deducted.
- Advertising costs: If there’s a cost associated with marketing your business, you can deduct this to reduce your taxable income.
- Home office: The small business home office deduction applies to small business owners who use part of their home exclusively and regularly for trade or business purposes. Learn more about the home office deduction.
Here is a link that may be useful for future reference.
https://turbotax.intuit.com/tax-tips/irs-tax-forms/form-1099-k-decoded-for-the-self-employed/L6xHSTX... - this explains the basics of the 1099-k.
Hope you have a great day and let us know if you have any other questions.
John
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