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posted Jun 5, 2019 4:31:15 PM

A client who paid via PayPal sent me a 1099-MISC but I also got a 1099-K from PayPal. A year ago I subtracted that money from 1099-K & IRS came after me for more $$$.

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1 Replies
Intuit Alumni
Jun 5, 2019 4:31:17 PM

Just keep detailed records.  If you can show that the 1099-MISC income is the same income that is reported on the 1099-K, you should not have a problem clearing up your IRS issue.  The IRS does not expect you to report the same income twice.  As long as you reported the 1099-MISC separately, you can deduct that same income from the 1099-K.  As mentioned before, keep detailed records, and you should not have a problem.