PayPal 1099k and TikTok

[Cj0777]

Hello! I am a creator on TikTok Shop and in 2024 have earned about $11k. The money I earn gets sent to my PayPal - then I withdrawal it into my bank account from there. 

I received a 1099k from PayPal and believe I will be receiving a 1099 from TikTok as well.

When I file this year, will I have to add both forms to my tax sheet even though the PayPal one is the only amount I have earned? What will I have to do?

I know this may seem self-explanatory; however, I am uneducated in taxes and want to be prepared. 

Thank you.

[RobertB4444]

When entering your information into the schedule C just enter the amount that you actually received.  The 1099 from TikTok and the 1099-K from PayPal are for the same amount so the one form indicates how much was paid to you and the second form just indicates how it was paid to you.  You don't need to enter the amount twice.

@Cj0777 

[Cj0777]

Okay, thank you!

[ale0214]

What if I didn’t make the “$5000” for a 1099k? How would I file? I also do TikTok shop and I was sent a 1099-MISC, but PayPal says I don’t have a 1099-k I’m guessing because I didn’t meet $5000. I calculate I made about a bit past $3,000 through TikTok shop. How would I input that on here since I don’t have a 1099-k, but was paid through PayPal? The MISC ones are from the creator fund on TikTok I believe. I’m confused.

[Vanessa A]

You would be self-employed, so you can enter this as Self-Employment income even without the 1099.  You will just enter it as cash.

 To enter your self-employment income select the following:

1. Federal
2. Income and Expenses
3. Show More next to Self-Employment
4. Start next to Self-Employment
5. Yes, to you have any self-employment income or expenses
6. Enter the type of self-employment work you do and you can select that you use your name for your business
7. Click through a few more screens and you will get to a screen that says "Your XX info"
8. Click Looks good
9. Then you will come to a screen that says Let's enter the income for your business.  It will give you the option of 1099-NEC or Other self-employed income including the 1099K , cash and checks.  Here is where you will enter the money you receive.
10. If you do not select one, it will not let you enter your income
11. Enter your self-employment income on the next screen
12. Continue and on the next screen click add expenses

* Please note navigation may differ slightly depending on which version of TurboTax you are using*
 

This income will be reported on Schedule C which is part of your overall tax return. This also means you will be subject to SE Tax.  If you did not pay SE Taxes in 2024, and if you plan to do this again in 2025, it may be a good idea to make  quarterly estimated payments to cover your SE taxes of 15.3% and avoid penalties.