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!
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.
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.