Overlapping 1099K and 1099NEC income

[steve60050]

I'm a contractor employee (high school soccer referee). Some schools pay through our assigning web page's payment section and some pay directly, with check. I get a 1099K from the assigning webpage and 1099NEC from school districts that paid more than $600, for the year. Some of the schools that issue 1099NEC pay through the assigning webpage. That income is reported on both the 1099K and the 1099NEC. How do I enter the overlapping information so I am not reporting the income twice?

[DianeW777]

There are a couple of choices, however I recommend you enter the income directly on the Schedule C, self employment section of your return.

It is not necessary to enter each document, but if you prefer to do that, then reduce the 1099-K amount by the amounts reported on the 1099-NECs. Keep good records of your total receipts for being a soccer referee so that you have them should you ever need to prove your actual income for this work.

If you already added the 1099s be sure to correct or delete the ones you need to so you are not duplicating your income.

• How do I report income from self-employment?

You can use General Income or Other self employed income as the category for any income not entered in a document (1099-NEC/1099-K).

[steve60050]

Thanks for the information. I was not sure if the 1099s were reported to the government and all had to match. 

[anotherttuser]

When the 1099k was first introduced, I received both a 1099k from my payment processor at the time and a 1099nec from one of the companies I contracted with.

Around September that year I received a nasty letter from the IRS accusing me of tax Fraud. I called the IRS and the operator was extremely rude accused me of tax fraud as I explained to her that the two different 1099s had duplicate income.

The end result was that I had to print out all invoices to that client and the related transaction history from the payment processor.

Hopefully the IRS has figured this out by now but I doubt it.

Edited: Since posting earlier today, I see the answer is to enter the difference as an expense labeled 1099 duplicate income.

[ThomasM125]

It may be better to enter all of the income reported to you and then enter an expense to back out the over-reported income. You can call the expense "mis-reported income" or something similar.

@anotherttuser 

[anotherttuser]

I just discovered that answer.

But that happened the first year of 1099k reporting and it didn't even occur to me that there would be an issue.