So this apparently was an issue last year, but persists to 2023's taxes too.
The Schedule C form, Part 1: Income, for question 1 has multiple parts:
1a. Enter other gross receipts or sales not reported on a 1099-NEC or 1099-MISC
1b. Enter gross receipts or sales reported on a 1099-NEC
1c. Enter gross receipts or sales reported on a 1099-MISC
1d. Enter gross receipts or sales reported on a 1099-K
1e. Receipts or sales from line 1a, 1b, 1c, and 1d
1f. Income reported to you on Form W-2
1g. Total Gross Receipts or Sales (add 1a through 1f).
The issue is that the TurboTax interview / question just uses the language from 1a when asking about your business income. So, if you answer it without understanding the underlying formulas, you would include the income from a 1099-K. Then TurboTax is adding lines 1a through 1d, putting that in 1e.
This DOUBLE COUNTS receipts and inflates the income. (fortunately the formulas don't actually follow the written instructions when it comes to 1g, as it would then triple count if is summed 1a along with 1e into 1g.....)
I just subtracted the numbers from the 1099-K from my gross receipts and put the difference into the question for 1a, and I have proper numbers.
I discovered this because I had already entered my numbers, then received a 1099-K. So I entered that information and saw a spike in taxes owed! When really, it shouldn't have changed anything, as the information within a 1099-K is already captured within the business income.
I am suggesting that the page be investigated by Intuit Employees to clarify or better ask the question to ensure the lowest tax guarantee!
