☰
✕
Sign In

Why sign in to the Community?

  • Submit a question
  • Check your notifications
Sign in to the Community or Sign in to TurboTax and start working on your taxes
Level 2
posted Jan 24, 2021 11:13:56 AM

Given PayPal 1099-k. Most of money reported as income is money for membership dues of a religious group (didn't have own account). It is not my income. How do I fix?

I am the Treasurer of a men's club in my religious community.  This is the first time we accepted PayPay and it was using my personal account. I then transferred the money to the organization's account after receiving it. I don't want to have this as my income as it was not.

0 1 841
1 Best answer
Employee Tax Expert
Jan 24, 2021 3:02:54 PM

Since the 1099-K is reported under your social security number, then it has to be included on your tax return. However, since it is not your income, you then have to subtract that amount from your return. By doing this, these amounts will net out to zero and there will be no tax effect to you. 

 

You can do this by following these steps in TurboTax:

  1. Open your return.
  2. Search for Other Income with the magnifying glass tool on the top of the page. 
  3. Select the Jump to Other Income link in the search results. 
  4. Answer No to the question Did you get a 1099-MISC?
  5. Scroll down and click on Miscellaneous Income under Less Common Income and click Start. 
  6. Scroll down to Other Reportable Income and click Start. 
  7. Answer Yes to the question Any Other Taxable Income?
  8. Enter a description (example- 1099-K issued to me as nominee for NAME OF ORG) and the amount shown on your 1099-K.
  9. Once complete, it will take you to the Other Miscellaneous Income Summary screen.
  10. Click on Add Another Income Item.
  11. Enter the same description as you did previously (in Step #8) and enter the 1099-K amount as a negative number.

 

1 Replies
Employee Tax Expert
Jan 24, 2021 3:02:54 PM

Since the 1099-K is reported under your social security number, then it has to be included on your tax return. However, since it is not your income, you then have to subtract that amount from your return. By doing this, these amounts will net out to zero and there will be no tax effect to you. 

 

You can do this by following these steps in TurboTax:

  1. Open your return.
  2. Search for Other Income with the magnifying glass tool on the top of the page. 
  3. Select the Jump to Other Income link in the search results. 
  4. Answer No to the question Did you get a 1099-MISC?
  5. Scroll down and click on Miscellaneous Income under Less Common Income and click Start. 
  6. Scroll down to Other Reportable Income and click Start. 
  7. Answer Yes to the question Any Other Taxable Income?
  8. Enter a description (example- 1099-K issued to me as nominee for NAME OF ORG) and the amount shown on your 1099-K.
  9. Once complete, it will take you to the Other Miscellaneous Income Summary screen.
  10. Click on Add Another Income Item.
  11. Enter the same description as you did previously (in Step #8) and enter the 1099-K amount as a negative number.