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GeminiinimeG
Returning Member

PayPal 1099-K and third party cashback rewards

PayPal reported the cashback rewards from third parties I received on my 1099-K. In my sales history report, it shows as a "disbursement." Does the IRS also see this as a discount/rebate and is it therefore, fully deductible? Would I include this as miscellaneous on my return? Kindly, help 🙂

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1 Reply
ColeenD3
Expert Alumni

PayPal 1099-K and third party cashback rewards

You should enter the 1099-K in TurboTax  and add a separate line item with a negative amount that represents the rebate and coupon income that is included on the 1099-K.

 

Please see a more complete information here. 1099K rebate

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