I have farming income. I take Square payments. I entered my total farming income, which includes payments received by Square. I received 1099-K. Do I enter separately?

[cagmail]

I accept PayPal and Square. If I get 1099Ks do I deduct these from my farm income?

[AliciaP1 · Accepted solution]

It is not necessary to report 1099-K income separately from your other farming income.  As long as your total income on your tax return reflects all the income you received regardless of payment type, you are in good shape. 

You can choose to deduct the 1099-K from your entered totals but you will also need to report any refunds, discounts, credits, fees, etc. that are not reflected in the gross receipts on the 1099-K.

[cagmail]

I'm just worried that if they don't 'see' the 1099-K reported somewhere, that it would trigger them to audit. I'll take a look at the other thing, but yes, good to put any of the charges in as well. I went ahead and put the 1099-K amount in the 'Other' farm income, and then subtracted that amount from the farm produce income. Seems odd... like this was an afterthought and they didn't consider farm income. Square is just a service provider.

[Critter-3]

FYI ... LOOK at the form ... all the IRS sees is the total income figure  no matter how you enter it into the TT program.  All the 1099 entry stuff is for your use only ... basically the program is acting like a calculator to add up all the amounts you enter. 

[cagmail]

Okay, Awesome. I'd rather not break apart my farm income into an 'other' section.