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Level 2
posted Feb 18, 2021 5:52:14 PM

I think receive 1099K by mistake? Should I report it?

Hello,

 

I received the 1099K form from Paypal surprisingly. I don't think I should receive it since 1) I have transactions < $20,000, and paid times < 200 which is under the federal threshold. 2) I was living in Wisconsin almost the whole 2020 year. There is no threshold in Wisconsin. 3) I did move to Illinois in mid November 2020. I know Illinois has threshold $1,000. While during the time, I have no transactions. So, I'm super confused why I got the 1099K form.  I'm wondering should I report this form to Wisconsin state tax and Illinois state tax, and also IRS (federal)? 

 

 

0 3 914
1 Best answer
Expert Alumni
Feb 18, 2021 7:43:27 PM

Please view this Turbo Tax link, for a solution to this. The answer to your question is yes you need to report it but in the link, there is a workaround to exclude the income. Here is how to report according to Hal_Al, one of our esteemed super users.

  1.  "Federal Taxes tab (Personal in  Home & Business)
  2. Wages & Income
  3. Scroll down to less Common Income
  4. Misc Income, 1099-A, 1099-C
  5. On the next screen, choose – Other reportable income  
  6. On the next screen, click yes
  7. On the next screen, you'll get blanks to enter the amount and a description. It will go on line 8 of Schedule 1 as "Other Income".  Suggestion for description: erroneous income on 1099K
  8. When that's done, do it again (a 2nd entry).  This time make it a negative entry; put a minus sign (-) in front of the amount. Suggestion for description: erroneous income on 1099K offset."

[Edited 02-18-2021|07:48 PM PST]

 

3 Replies
Expert Alumni
Feb 18, 2021 6:10:23 PM

How much is the 1099-K?

Level 2
Feb 18, 2021 7:12:48 PM

It is $ 9,838

Expert Alumni
Feb 18, 2021 7:43:27 PM

Please view this Turbo Tax link, for a solution to this. The answer to your question is yes you need to report it but in the link, there is a workaround to exclude the income. Here is how to report according to Hal_Al, one of our esteemed super users.

  1.  "Federal Taxes tab (Personal in  Home & Business)
  2. Wages & Income
  3. Scroll down to less Common Income
  4. Misc Income, 1099-A, 1099-C
  5. On the next screen, choose – Other reportable income  
  6. On the next screen, click yes
  7. On the next screen, you'll get blanks to enter the amount and a description. It will go on line 8 of Schedule 1 as "Other Income".  Suggestion for description: erroneous income on 1099K
  8. When that's done, do it again (a 2nd entry).  This time make it a negative entry; put a minus sign (-) in front of the amount. Suggestion for description: erroneous income on 1099K offset."

[Edited 02-18-2021|07:48 PM PST]