which form do i file? i have 2 1099-k forms for the same income. Whatnot and paypal are the companies. The paypal is a little different in the amounts.

[jasonmelerine]

if i back out the fees on whatnots form, it matches the amounts on the what not form

[KrisD15]

To clarify- What type of income is this reporting? Personal or business or a mix? 

[jasonmelerine]

business

[jasonmelerine]

I sell on the marketplace app called whatnot. The money that I make is sent to my PayPal account. 

[DianeW777]

If I understand your question,  you have two 1099-Ks with the same income.  One being reported form Whatnot and the other being reported by PayPal.  The funds from Whatnot were deposited to your PayPal account and for this reason you have the income reported from each company, thereby doubling your income.

If this is true, you are not required to report income you didn't actually receive.  This means you will report the income only once on your tax return.  Use the income amount that is highest on your documents unless you can substantiate the total income received.

Keep all records with your tax return to show you only received the income once. Example is bank records, PayPal account showing the deposits, etc.

You also indicated this was business income from sales through the marketplace app Whatnot. If you are selling personal use items at a loss, then the loss would not be allowed and the income for these sales would not be required to be reported. Again, keep the records should you need them later. 

If, however, you are purchasing items/products for resale and you are engaged in the activity to produce a profit this is self employment income. Use the link below to enter your self employment income and expenses.

• How do I report income from self-employment?

Note: This IRS link will help you understand tax rules regarding: Business or Hobby?

Key elements:

1. A hobby requires you to report the income you received and under the current tax law, Tax Cuts and Jobs Act (TCJA), no expenses are allowed to be used to reduce the money collected even if you itemize deductions.
2. A business allows you to deduct the costs necessary to obtain the income.  The law explains that 'you must be engaged in the activity to produce a profit'.  The test under IRS tax law is that you must show a profit three out of every five consecutive years to be considered a business.

@jasonmelerine 

[jasonmelerine]

I am actively buying and selling items with the intent to produce a profit. I haven't reached a profit yet because im just starting off. Is that considered a business? 

[JamesG1]

You may have an intent to produce a profit even though you have yet to generate a net profit.

This IRS website states:

The IRS presumes that an activity is carried on for profit if it makes a profit during at least three of the last five tax years, including the current year — at least two of the last seven years for activities that consist primarily of breeding, showing, training or racing horses.
 

As @DianeW777 states above:

If, however, you are purchasing items/products for resale and you are engaged in the activity to produce a profit this is self employment income.

In TurboTax Online, report self-employment income and expense, by following these steps: 

• Down the left side of the screen, click on Federal.
• Down the left side of the screen, click on Wages and Income.
• Under Your income, scroll down to Self-employment.  Click the down arrow to the right.
• Click to the right of Self-employment income and expenses.

@jasonmelerine