I reported Rover Income under 1099K but where do I report the fee that went to Rover i.e. Schedule C?

[AnnetteB6 · Accepted solution]

Yes, the fee that was taken out of your income reported on Form 1099-K is considered to be a business expense.  You can enter it under the Miscellaneous business expense category where you can enter a description for the expense and then the amount.

[nobilitat1]

Rover also includes cancelation amounts in total income earned which is a false representation of earnings.    

For example (in round numbers):

Rover 1099-K reports $2600 (1a) for gross payments.

Summary report shows $300 in refunds which were cancelations.

Summary report shows $400 in fees (Rover's earnings).

Bottom line for actual earnings is $1900. To me that is what needs to be reported as taxable income.  Does Rover pay taxes on the commissions they take????  I'm not feeling good about this.

[DaveF1006]

The refunds and fees can be listed as expenses in your return and are legitimate expenses. The commissions claimed by Rover is taxable income when they file their corporate returns.