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TikTok 1099 NEC vs 1099 K PayPal Amounts

I am trying to help a friend with their taxes and their 1099 NEC from Tik Tok is $100,000 but their 1099K from paypal is for $200, 000, I downloaded the information from PayPal and figured out where all the payments came from that make up the $200, 000 and I still have a huge variance between the two.  Has anyone seen this?  I want to be sure they report the correct income on their return.  

 

Thanks in advance 

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2 Replies
ThomasM125
Expert Alumni

TikTok 1099 NEC vs 1099 K PayPal Amounts

They must report the correct amount of sales even if it does not agree with the reporting form. Also, they should maintain their own record of sales to substantiate the sales entry on their tax return. It sounds like you may have done that for the $200,000, and if so that is what should be entered on the tax return.

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TikTok 1099 NEC vs 1099 K PayPal Amounts

Yes, thank you!! . We confirmed what the correct amount is. Just so confused on why the 1099 NEC was 1/2 of the amount sent! 

I know this isn’t the only case but it will drive me crazy til I know why TT did that!! 

thanks again 

PS sorry for posting in the wrong group this was my first post ! 

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