I received a paypal working capital loan and they put the loan amount as income on my 1099-k. How do I change that so it is not counted as income?

[DS30]

You would have to contact Paypal for any issues related to making changes to your 1099-K.

Please note that the 1099-K is for your information purposes only (unlike a 1099-MISC) so if the amount that is actually your taxable income from Paypal is less than what is being reported on your 1099-K, just report the correct amount when you are reporting income on Schedule C (self-employment income).

Just make sure to keep a copy of your 1099-K with your records.

[jaxawd]

How would we coint the automatic repayments ? As a non income category and just deduct the loan fee ?

[AngryatPaypal]

OMG! They did this to my 2016 return and now the irs is trying to say that I owe over $30k. 

I'm So MAD! Paypal will not admit it either! I have calculated everything down to a T and it's the working capital loans that's messing my taxes up. Now I'm screwed. Because irs just took my whole ENTIRE refund. I think we need to contact a lawyer. Paypal is screwing with us and it's time to set them straight. I'm so mad that I now have to fight for my **bleep** money 

[KrisD15]

You'll need to show the IRS the documentation for the loan. 

Remember that you can deduct the interest payments you make as an expense. (not the principal, just the interest)