PayPal 1099k

[Jawhdavi7]

Hi I have a question 

so I have gotten a 1099k from PayPal, but I never sold anything. All of the money was from myself to another account to transfer money into my bank accounts to pay bills, and I didn’t get any profit. Do I just put the entire profit as erroneous? I don’t know why I would have to pay taxes when it’s my own money lol

[Bsch4477]

What tax year are you filing for?  But don’t worry. You will be able to zero out that reported amount and not pay tax on it. 

[Jawhdavi7]

It’s going to be this year 2022

[Bsch4477]

You can’t file until late January so don’t do anything yet. Lots of people will be in the same situation for tax year 2022. One way of handling it would be to complete SchC as self employed, report the amount as income and then claim a business deduction for the same amount as “1099-K amount not taxable income “.   There may be simpler ways to handle it so keep posted. 

[Jawhdavi7]

Got it. I was just going to do the route I saw where you post the 1099 and then post the same amount as negative and say it’s erroneous. I’m not worried about it I just want to make sure I know what I’m doing come tax season  

[Critter-3]

Many people are going to be in the same situation this year due to the new reporting requirements for the 1099-K so hopefully the IRS will post filing instructions by January on how to properly handle this.