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1099K from Square. I belong to a 501C organization, they had an event where they accepted credit cards. I transferred funds back to organization once event was over.

I never made any money. I was only acting as a medial pass-through for the event.
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1 Reply
JamesG1
Employee Tax Expert

1099K from Square. I belong to a 501C organization, they had an event where they accepted credit cards. I transferred funds back to organization once event was over.

None of the receipts from the IRS form 1099-K were yours because you remitted the proceeds to the 501C organization.

 

The IRS will expect to see the income reported under your Social Security number but the income can be designated as "the amount that shouldn't be included".

 

In TurboTax Online, follow these steps.

 

  • Down the left side of the screen, click Federal.
  • Down the left side of the screen, click Wages & Income.
  • Scroll down to Other Common Income and click on the dropdown menu.
  • Under Your income and expenses, click to the right of Form 1099-K.
  • At the screen Did you get a 1099-K? click Yes.
  • At the screen How would you like to enter your 1099-K? click Type it in myself.  Click Continue.
  • At the screen Choose which type of income your 1099-K is for, select the button for Other income.  Click Continue.
  • At the screen Let’s get the info from your 1099-K, enter the information.     
  • However, select the box "This amount in box 1a is too high or includes some personal transactions."
  • Enter the amount of the IRS form 1099-K in the box "Enter the amount that shouldn't be included".
  • Click Continue.

The entry will be reported at the top of Schedule 1 Additional Income and Adjustments to Income.

 

 

Retain records of the transaction including proof of the remittance to the organization should a tax authority have questions about the transaction at a later time.

 

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