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Tax law changes
When you have a small business, you typically will not be using the 1099-K entry. Rather, the amounts from 1099-K will already be included in your sales. As you indicated, the 1099-NEC has reported the sales, so do not double-count them. If you would receive a letter from the IRS, you simply respond with a letter back that the amount from 1099-K was already included in your sales income.
See this article for more information: IRS Form 1099-K: What Online Business Owners Should Know
‎February 15, 2025
7:57 AM