Redundant income on 1099-K and 1099-NEC

Forum|Forum|11 months ago
April 14, 2025
1 reply
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I have income on a 1099-K that is also reflected on a couple 1099-NEC's how / where do I adjust or offset this income so I'm not paying tax on it twice?

TurboTax Self Employed Online

Best answer by JamesG1

Do both forms report proceeds that will be reported as self-employment income reported on a Schedule C Profit or Loss From Business?

If this is the case, I would create the self-employment activity and report the IRS form 1099-NEC as income reported within the self-employment activity.

In TurboTax Premier Online, report self-employment income and expenses by following these directions:

Down the left side of the screen, click Federal.
Down the left side of the screen, click Wages & Income.
Click on the drop down arrow to the right of Self-employment.
Click to the right of Self-employment income and expenses.
At the screen Tell us the type of self-employment work you do, enter the answer and click Continue.
Establish the self-employment activity and report the income and expense.

Report the IRS form 1099-K:

At the screen Which type of income is your 1099-K for, report the IRS form 1099-K proceeds as Other.
Select This amount in box 1a is too high.... and report the full amount.
The amount in box 1a should be reported on Schedule 1 Additional Income and Adjustments to Income as an amount reported to you on form 1099-K that was included in error.

Retain all paperwork with you income tax files should a tax authority contact you at a later time.

JamesG1Answer

Do both forms report proceeds that will be reported as self-employment income reported on a Schedule C Profit or Loss From Business?

If this is the case, I would create the self-employment activity and report the IRS form 1099-NEC as income reported within the self-employment activity.

In TurboTax Premier Online, report self-employment income and expenses by following these directions:

Down the left side of the screen, click Federal.
Down the left side of the screen, click Wages & Income.
Click on the drop down arrow to the right of Self-employment.
Click to the right of Self-employment income and expenses.
At the screen Tell us the type of self-employment work you do, enter the answer and click Continue.
Establish the self-employment activity and report the income and expense.

Report the IRS form 1099-K:

At the screen Which type of income is your 1099-K for, report the IRS form 1099-K proceeds as Other.
Select This amount in box 1a is too high.... and report the full amount.
The amount in box 1a should be reported on Schedule 1 Additional Income and Adjustments to Income as an amount reported to you on form 1099-K that was included in error.

Retain all paperwork with you income tax files should a tax authority contact you at a later time.

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damianvinesAuthor

Your explanation makes sense. I just want to re-iterate my concern, to make sure I understand... I'm not sure if I'm implying that the 1099-K is wrong. For instance, I have a 1099-NEC from a client that paid me $1,200 via CC, this payment was made through my merchant account at Stripe. I also received a 1099-K from Stripe that includes all of my transactions (income) for the year .... The dollar amount on this 1099-K includes this payment from this customer... So if I add both forms as income I'm paying twice for this particular 1099-NEC. Should this client not have sent me a 1099-NEC, is that the real problem?

JamesG1

It is become more common that the same income is being reported on an IRS form 1099-NEC from one entity and on an IRS form 1099-K from a second entity.

Whether the issuer of the IRS form 1099-NEC was correct or not, we have to presume that the IRS form 1099-NEC was reported to the IRS and act accordingly.

Ideally, you are maintaining a record of your income and expense in an accounting system or in a spreadsheet and your record becomes the basis of what is reported to the IRS.

Then we react to these for 1099's as they show up. Maintain a complete record so that you can respond to a tax authority at a later time.

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