Paypal sent me a 1099-k for every penny that landed in my paypal account last year. a) 2 clients sent me 1099-NEC, and they also paid me through Paypal, so right away, I'm not sure which way I should report money from the NEC clients. b) I bought and sold crypto numerous times through paypal, so I have money coming back in that's actually mine from my crypto wallet showing as part of my income on this Paypal 1099-k. I am at a loss on how to deal with any of this.
As an example:
let's say the 1099-k shows 40,000 in income; of some of that income:
2,500 of that is from income reported over 2 different 1099-NECs, so that's duplicate reporting. Furthermore, Paypal took a cut of that money so I'm not sure how to report the Paypal fees here.
8,000+ is crypto that I sent to myself from a crypto wallet. (I actually spent more than that on crypto so technically I lost money, it's not income)
about 23,000 of the 1099-k is money i actually earned from a client.
a smaller amount is from friends sending money
how on earth do I reconcile any of this? my "income" is nowhere near the 40,000 reported on the 1099-k, and this is before I do my usual business deductions, etc. (I'm using a Windows version of TurboTax)
