I have a 1099-k for CC transactions. Refunds are not reflected in the 1099-k. Therefore, where do i deduct the refunds issued?

[david-a-puett]

Im trying to understand wether i put the entire amount of the 1099k in the gross earnings box or the amount minus refunds. If the entire amount, where do i deduct refunds issued?

[AnthonyC · Accepted solution]

You will enter the gross amount of Form 1099K in the income section and then deduct the refunds issued.

But, the steps are a little out of order than what you would expect.  When you first set up your business information, you will then proceed to enter the income (1099K would be entered under additional income).  You will then be prompted to enter expenses.  After entering the expenses, you will have to go back to the Business Summary screen and click "Add Income" (see screenshot).  Now, you will see an additional line item for "Rebates/Refunds" (see screenshot) that likely wasn't there the first time through when you entered the income.

[dynman1]

Hello. I don't see the screenshot to see if I am doing this right. I put in the gross amount for the 1099K, but the whole amount was refunded due to it being an item review. I paid for the product, did the review, and the seller gave me a refund every time. So, the refunds should match the 1099K gross amount. I just need to see your screen shot to know what to look for. Thank you.