Wife uses my paypal 1099-k is in my ssn name

Forum|Forum|4 years ago
February 3, 2022
12 replies
74 views

So if my wife has always used my paypal it is only used for her business. We got the 1099-k and it is in my name. So how do we fill this out do we just put the 1099-k on here schedule C and they will file it under her business. This new law is going to get real confusing for people that have done this. I need this income to go under her name not mine. Would this be the correct way to do it. Also where does the 1099-k info go in at on turbo tax home and business.

TurboTax Home & Biz Windows

Vanessa A

Level 15

Since the 1099K is not actually entered on your return as an individual item and should be already accounted for with the rest of the income from a business, you can just keep the form with your taxes with an explanation that your wife is using your PayPal account and show that the income is accounted for on her return.

For the future, it may be easier if she gets her own PayPal account because of the new 1099K reporting rules.

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JosparkyAuthor

Level 2

Thanks for your answer so then there is nowhere that the 1099-k goes in turbo tax then? I am assuming when they see the 1099-K come in in my name that they will look for it on our joint return and see that it is on her schedul C business then and it will go down as her income and not mine. I did put it in on the General Income on her schedule C in turbo tax and wrote this in the line. 1099-k Income Reported from my husbands paypal account will they look at that and see what is going on? Need this to go down on here income as I am disabled. I was not aware of all this 1099-k stuff. I am assuming that they will just want to see where the taxes where paid on the money and it will not affect me?

ThomasM125

Level 15

There is no direct entry screen for the 1099-K , you enter it as you did as business income not reported on a form 1099-NEC. It is unlikely the IRS will read the description you entered for your business income.

I understand your concern that the 1099-K income is in your name but will appear on your spouse's business schedule C. It is possible that this could cause an issue, however you have reported the income properly so you have a good explanation if the IRS should query you about it later. If you want, you could make a business entry for yourself, reporting the income under your name, and then enter a "Commission" expense for the same amount as the income so your net income will be zero.

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