1099k income from Loan Principal Payments

[John280]

I expect to receive a 1099k form from my ACH for personal loan principal payments to me (non-business).  This income is a personal loan repayment (principal only)  to me and is non-taxable.  I will have to report the 1099k as income.  How do I subtract this non-taxable income amount?

[tagteam · Accepted solution]

You can either not report the figure on the 1099-K (which might create a mismatch) or enter the figure as miscellaneous income and then make an offsetting (negative) entry for the same amount.

[NCperson]

@tagteam @John280 - IRS just announced a 1 year delay in implementation of the new 1099K rules.  

https://www.irs.gov/newsroom/irs-announces-delay-for-implementation-of-600-reporting-threshold-for-t...

[Critter-3]

However the new reporting will take affect in 2023 so I highly recommend you find a different way to recieve the payments that a 1099-K will not be issued ... doesn't anyone send paper checks anymore ?