Don't enter the same income twice. You can adjust the amounts when you enter the forms to ensure no income gets duplicated on your tax return. See 1099-K entries in TurboTax to report your 1099-K income; it depends on what kind of income it is.
Thanks Dawn!
I'm an independent software contractor so this is payment for services as self-employed. So are you saying I would record the 1099-NECs as they are, and then only record any amount from the Paypal 1099-K that isn't accounted for by 1099-NECs? I've always reported all of my income (some of which comes through Paypal, some of which is reported by clients through 1099-NECs) but never got a 1099-K before this year. It seems redundant and confusing since I was already going to report it, and I use the same Paypal account for personal things as well.
Thanks,
Daryl
You are correct, you wouldn't report any Form 1099-K income that is already reported from a Form 1099-Nec.
Would this not result in the IRS thinking you underreported your income?
Maybe, but you will be able to show that you did not, so keep detailed records of your transactions and it will be fine. It is very common for taxpayers to get 1099-Ks for duplicate income, so it is doubtful anyone will inquire about it. @joeltax