Question

Business funds deposited into personal paypal account. 1099-K

Forum|Forum|1 year ago
February 21, 2025
1 reply
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One of my customers deposited a business payment into a personal Paypal account and I got a 1099-K. I understand I have to enter into personal taxes and pay tax. All funds that were deposited were used for business expenses directly out of Paypal. Question is, How can I reclaim these funds on personal taxes as an owner of an S-Corp? The funds never got transferred to any personal account.

Not A Product Question

V

Vanessa A

Since you will be reporting this income on your S-Corp return, you will just enter the 199-K and then back it out.

To enter the 1099 K and then back it out immediately take the following steps:

Income
1099-K under Other Common Income
Enter the information from the 1099-K
Check the box that says, This amount in box 1a is too high or includes some personal transactions
Enter the amount that shouldn't be included

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