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nath762987
New Member

I got a 21,000 from Distrokid. I sent that income to Paypal then too my bank. Paypal sent that out as another 1099 so my income was doubled. How to I say it was doubled?

Would really appreciate the help. My accountant did not know what to do
3 Replies
pk
Level 12
Level 12

I got a 21,000 from Distrokid. I sent that income to Paypal then too my bank. Paypal sent that out as another 1099 so my income was doubled. How to I say it was doubled?

@nath762987 , as I understand from your post --- you earned  some monies  via Dsitrokid .  Distrokid sent the earnings to PayPal.  PayPal then forward the monies to your bank and issued you a 1099-K.   You should report ONLY the 1099-K and NOT  the Distrokid distribution ( they did not send you any 1099, right ? ).

 

Am I in the left field ?

 

 

nath762987
New Member

I got a 21,000 from Distrokid. I sent that income to Paypal then too my bank. Paypal sent that out as another 1099 so my income was doubled. How to I say it was doubled?

Unfortunately, Distrokid sent me a 1099-MISC. And Paypal sent the 1099k with the same income.Should I not report the MISC ?

 

Thank you so much for the response

pk
Level 12
Level 12

I got a 21,000 from Distrokid. I sent that income to Paypal then too my bank. Paypal sent that out as another 1099 so my income was doubled. How to I say it was doubled?

@nath762987 , I would suggest reporting 1099-MISC and for the time being ignore the 1099-K -- am assuming here  that   (a) you are US citizen/ Resident (Green Card )/Resident for tax purposes and (b) that 1099-K  back up  details show that  the money was transferred either by you to Paypal or by Distrokid to Paypal.   If the IRS  ever questions this  "un-reported 1099-K, you can provide the documentation to show  the "audit trail ".  Not to worry you would be fine.

BTW -- the Distrokid payment is  license fees for use of your intellectual property or actual performance --- please  make sure that  TurboTax has all the details from the boxes  of 1099-MISC.

 

pk

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