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jpatten
New Member

1099-Ks from payment processors show gross sales income while the Service income on my P&L in QuickBooks is after adjustments for sales tax and tips. Is this a problem?

The sales figures don't match as one is gross and the other is net. Is this an issue when preparing my tax returns?
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1 Reply
RobertB4444
Expert Alumni

1099-Ks from payment processors show gross sales income while the Service income on my P&L in QuickBooks is after adjustments for sales tax and tips. Is this a problem?

No.  Enter the 1099-K just as you received it.  It will be reported as your gross income.  Then enter all of your expenses from Quickbooks and the net income in TurboTax should match the net income in Quickbooks.  That way the IRS sees the number reported on the 1099-K but only charges you taxes on the net income.

 

@jpatten 

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