1099-K, online selling, only one platform

[royals1]

I sell online across several platforms but was only above $20,000 on one of them so I only got one 1099-K.

I have a personal spreadsheet system for all of my inventory using the accrual method. All the platforms are mixed together.

So if I add the 1099-K I got from Poshmark it is instantly doubling up the income from just that one platform, as I entered my entire sales/inventory/fees, etc., already.

What is the best way to address this? My information is totally accurate before I add the 1099-K, but I don't want to just ignore this form as I know it was sent to the IRS.

Going into my spreadsheet to remove just the Poshmark sales is possible but would be incredibly tedious.

Thank you for any help!

[ShirlynW]

I strongly suggest adding the 1099-K from Postmark. To begin, enter all 1099-Ks you received. Then enter your expenses. In Supplies, enter the cost of goods sold. The cost of goods sold is the direct cost of producing the goods sold.

For more information

Here is how you enter your cost of goods sold using TurboTax Online:

1. With your return open in TurboTax, search for Schedule C and then select the "jump to" link to go to the self-employed section.
   • If you are new to this section, we will ask for info about your business first. Eventually, we will ask if you had any business-related expenses; answer Yes.
   • Otherwise, select Review next to your business and then the Add Expenses for this work button.
2. When you get to the First select the expenses you know you had screen, scroll down, and select either Supplies.

@royals1 

[royals1]

Thank you for your reply @ShirlynW .

My confusion is because I only received a 1099-K from one platform, which represents about half of my earnings. So I still need to report my other earnings for which I didn't receive a 1099-K. The way my spreadsheet is set up I just entered my gross sales in "Other self-employed income". These include what's on the 1099-K so when I also add that as well I'm duplicating those sales.

So I suppose I need to extract the sales from the platform that sent the 1099-K so the Other self-employed income is solely everything I didn't get 1099-K for. This makes sense, right? Thank you so much.

[HelenC12]

The 1099-K does not need to be entered separately into your tax return. The IRS is looking for the income that is reported on the 1099-K to be in your return. 

In some cases, like yours and others, as long as the numbers on  the 1099-K or a 1099-MISC are present on your tax return, the form does not need to be entered. Your simpler solution to not include the 1099-K is good. You are handling everything just fine if the total income you are reporting matches the total income shown on the Form 1099-K. This will not raise a red flag with the IRS.

This answer was previously posted by Employee Tax Expert PattiF

[royals1]

Thank you @HelenC12 , this is very helpful information! All my income will certainly be present under "Other self-employed income", and it will save me time to not have to pick and choose which numbers are included there. 

I thought my return would be suspicious if I didn't enter the 1099-K itself, it is very good to know as long as I report the income itself I will be fine.