If I have a 1099 k and a 1099 misc for the same income do I not include it on the 1099 k?

[AmyT]

You should always report all income filed with the IRS (i.e., all 1099s) on your return. (The IRS does have a matching program to ensure that all 1099s reported to them are included on the recipient's income tax returns. ) This does not mean that you will have to pay tax on the same income twice (see below).

After you have recorded both 1099s in the income section of your schedule C, you are going to back one of them out by treating it as an expense.

In the Expenses portion of your Schedule C (Self-employed profit or loss), you should add Other miscellaneous expenses.  For the description, put in "1099 income reported twice" and then enter the amount of the duplicate income.

[D01]

I read the answer seems like if you do it that way your gross income would show you made more money when you didn’t, that is the issue I’m having with a client now that’s in a audit with IRS. This is a glitch in the IRS system. 

Client received 1099k from pay pal and the same people that paid him gave him a 1099misc, this is duplicated income and should not be in gross receipts. 

If you do it the way you guys are saying the over income is not going to be correct. Even though yes you won’t pay taxes on it, but that’s a big difference saying I took in 200k when I only took in 70k understand ? 

So we have brought this to the auditors attention and he’s not buying it, this poses a really big problem that should be corrected..... on IRS’s end. 

[Critter]

Ok ... if the taxpayer cannot get the 1099 issue corrected then the other option was to enter ALL the income reported and then simply take a deduction for the excess either as an expense OR  on the returns line.  Of course if this return is already in audit then they will need to show more proof of income like their bank statements and credit card  payment records. 

[Carl]

You can negate the 1099-MISC income (assuming it's reported in box 7 and I "think" also if reported in box 3) by entering the the 1099-MISC first, and then showing it as a "refund" to the client in the Returns and Allowances section. For the SCH C, the returns and allowances section is in the same section where you report the business income. That will "offset" the double reporting and it also won't be included in the gross receipts that way.

[amyy44]

Genius!!