Should I send 1099s?

[danlcho]

I’m an artist.  My spouse and I file a joint return of form 1040 with schedule C.

I invited other independent artists to join me in a show (at my home).  For convenience, I swiped all credit card purchases on my Square reader— $4000 for other artists, $1000 of my own work — all $5,000 landed in my bank account.  When the show ended, I wrote a check to each artist for the amount she had sold.  Now I learn Square is going to send _me_ a 1099-K, listing the $5000 of credit card transactions even though my income from the show is just $1000.  This is going to look suspicious to IRS, isn’t it?  Should I send 1099-NECs to all the other artists to prove to IRS that $4000 wasn't really part of my income?

(Irrelevant, I suppose, but  _I_ paid the sales tax on the total $5000 — again, just for for the sake of convenience.)

Thank you for any advice you'd be will ing to give me.

Mary Ellen

[Critter-3]

YES ... that is exactly what you need to do to take the income off the Sch C since you have to report it all on the Sch C. 

[VolvoGirl]

Are you using Turbo Tax Online or the Desktop program?  And which version?

You need to give a 1099NEC (previous a 1099Misc) to anyone you paid $600 or more to for the year. But not to corporations or for merchandise. You send the IRS a copy of the 1099NEC  with the transmittal summary form 1096. These are due to the person by Jan 31 and to the IRS by Jan 31 also.

Starting in 2020 they added a new 1099NEC form to replace the 1099Misc.  If you are using the Online Self Employed version or Desktop Home & Business program or Business program you can use Turbo Tax.

For Online Self Employed version,

Log into your account

Scroll down to Your Account and click on Show

Click on Create W-2s and 1099s

In your return, Anywhere on any screen you see....

Help me prepare and file W-2s and 1099s

Click on it and the side box will open, Then click on Quick Employer Forms in the side box.

Or from the Account Screen it will take you directly to Quick Employer Forms

How to create W2s and 1099

https://ttlc.intuit.com/community/forms/help/how-do-i-create-w-2-and-1099-forms-in-turbotax/00/25869

[danlcho]

Thanks very much.

[danlcho]

Thank you very much, VolvoGirl