I received a 1099-k that includes refunds, sales tax and processing fees. I also received a 1099-NEC that was included in that number. How to I correct that?

[abril1127]

I received a 1099-k from square for total amount sold.  That number included sales tax collected, returned items and processing fees.   How do I deduct those items as well at the 1099NEC that my client sent me that is also included in that 1099-k form because she paid by credit card.

[MonikaK1]

One way to address this issue is to enter both the 1099-K and the 1099-NEC in the sections provided for entering those forms in TurboTax so that they are included in income. This way, the IRS information return matching program won't perceive that one of the forms is missing from your return.

Then, make a separate entry reporting the 1099-NEC amount again as a negative number with the explanation that the amount shown on the form was included in the amount already reported on Form 1099-K.