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If I received money via paypal 1099k from a friend who sent it as "goods and services" instead of "friends and family" how can I rectify my taxes? I don't have a business

 
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1 Reply
JamesG1
Expert Alumni

If I received money via paypal 1099k from a friend who sent it as "goods and services" instead of "friends and family" how can I rectify my taxes? I don't have a business

Report the IRS form 1099-K.  Select Other at the screen What type of income is your 1099-K for?.

 

  • Down the left side of the screen, click Federal.
  • Down the left side of the screen, click Wages & Income.
  • Click the down arrow to the right of Other Common Income.
  • Click to the right of Form 1099-K.
  • At the screen Did you get a 1099-K? click Yes.
  • At the screen How would you like to enter your 1099-K? click Type it in myself.  Click Continue.
  • At the screen Choose which type of income your 1099-K is for, select the button for Other income.  Click Continue.
  • At the screen Let’s get the info from your 1099-K, enter the information.     
  • Report the amount in the box "This amount in box 1a is too high or includes some personal transactions."
  • Click Continue.

At the top of Schedule 1, note the amount reported in error or for personal items sold at a loss.

 

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