How do I adjust for the "double report" of income on a 1099 MiSC and on a 1099 K?

[blackdogwalker]

I am a self employed blogger. One payment from a company was reported on a 1099 Misc, but the same income was also included as part of a 1099 K from PayPal, (The company"s payment to me was made via PayPal.) How do I adjust for the "double report" of income? Do I report the 1099 K amount minus the 1099 MISC amount under "other income"?

[Coleen3 · Accepted solution]

https://ttlc.intuit.com/replies/6101982

[MaryD09]

Good question - I just got a CP2000 form from the IRS where they're proposing an assessment of another $12K or so in taxes and penalties on the $25K in "income" PayPal reported for the 2017 tax year (which I already reported through the 1099-MISC section).

I assumed the IRS would be wise to the double-reporting issue by now, but maybe the fact that there's about a $300 discrepancy between my 1099-MISC income and the 1099-K income (various reimbursements from friends) triggered something. I'll update if/when I hear back from the IRS -- I'm asking them how to avoid this in the future. 🙂 

[joeltax]

Hey I know thi is 6 years later but did you ever hear back abut how to handle this?

[DianeW777]

Yes. You are not required to report more income than you actually received.  If this is self employment income simply enter the income from your activity without adding the tax forms themselves. Make notes and keep any proof the money is duplicated should you need it later. This is an issue and hopefully Congress will see the error of their ways and create a solution to stop double reporting.

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@joeltax