I've mistakenly used goods and services when receiving money from PayPal multiple times from the same person, even though I did not sell anything,now I got 1099-k.

[Sarahjane012120]

I've mistakenly used goods and services when receiving money from PayPal multiple times from the same person, even though I did not sell anything, now I got 1099-k.what should I do? I have $21000 total gross,

[KrisD15 · Accepted solution]

You can adjust the taxable amount of income on Form 1099-K but you also need to keep documentation of what the transactions were if not income. 

If the 21,000 represents gifts from one person, that person should also file a "Gift Tax Return" although that would not be your responsibility. 

[Sarahjane012120]

Thank you for answering, it's from Family- but the thing is they are from internationally and they don't file taxes.

[MinhT1]

When you receive form 1099-K, certain items may not be taxable.

Depending on the circumstances and the nature of the non-taxable items, the way you exclude them from your tax return may be different.

Please read this IRS FAQ to find how to deal with these items.

[Sarahjane012120]

the transaction is international and they don't do tax every year on where it came from. what to do? and how to file it?

[LeticiaF1]

Even if the money came from another country and you don't need to file a return from where it came from, you must report it on your US return since you got a Form 1099-K.  Follow the steps provided by KrisD15 to enter this on TurboTax.  

@Sarahjane012120