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spendlove
Level 1

How do I avoid having my revenue taxed twice by the IRS?

I do affiliate marketing for a living.  The commission payments get transferred into my business PayPal account and the various businesses also send me a 1099.  Normally I would just list the 1099s on my tax return, but this affiliate revenue is already taxed when I enter the numbers off Form 1099-K that PayPal sent.

 

Now the IRS is saying that I failed to record these other 1099s that I received, which is technically correct.  But I didn't do so because I didn't want my affiliate commissions to be taxed twice.

 

If the money is already accounted for on the 1099-K, then why do I also need to note the individual 1099s that I get from these marketing companies?  Again, the goal is to avoid double taxation and make sure I'm doing everything correct.

 

Thanks!

1 Best answer

Accepted Solutions
MinhT
Expert Alumni

How do I avoid having my revenue taxed twice by the IRS?

Although your revenues are reported both on the 1099-MISC from your vendors and on the 1099-K from PayPal, you only need to report that revenue ONCE.

If you receive a question from the IRS, you can simply explain that the numbers reported are for the same income and that you have reported that income on your tax return.

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1 Reply
MinhT
Expert Alumni

How do I avoid having my revenue taxed twice by the IRS?

Although your revenues are reported both on the 1099-MISC from your vendors and on the 1099-K from PayPal, you only need to report that revenue ONCE.

If you receive a question from the IRS, you can simply explain that the numbers reported are for the same income and that you have reported that income on your tax return.

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"

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