Can I change form 1099K from Paypal into my name as I'm the self employed one when due to Paypal account in spouse's name it shows as his income and Paypal won't help?

[stewarthomedepot]

I started selling on ebay several years ago and since my husband already had a Paypal account connected to the ebay account, I simply used that and didn't change anything. My sales have recently taken off very well and now I received a form 1099K in my husbands' name showing that he made the income but he didn't at all as I'm the only seller and the reason it matters so much is because he is on disability and this form makes it look like he is working and Paypal will not help at all as they say it has to be in the name of the account holder and they only allow one name to be the account holder.

[Opus 17 · Accepted solution]

It sounds like you need to make a separate account in your own name.  There is probably nothing you can do about the past transactions.

You need to report the income on your tax return no matter whose name the account is in.  If you file a joint return with your spouse, it won't matter that the SSNs don't match.  If you file separately, you still must report the income.  The IRS will probably send a letter to your spouse asking why he did not report the income.  He can reply with an explanation and a copy of your tax return showing that you reported the income.

[stewarthomedepot]

Thank you so much. So as long as we file jointly, I can claim it under my income and there won't be any problems?

[Opus 17]

Well, it will still be the case that the 1099-K has your spouse's SSN on it, but the schedule C for self-employment will have your SSN on it, even though they are part of one overall tax return.  The IRS may still send a letter, but it will be very easy to answer it.

Turbotax may also get confused when you enter the 1099-K, it may try and create a business for your spouse.  You may need to use your SSN when entering the form in the program.  I haven't actually tested this, though.