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I received a 1099 from a company that I do work for. That company pays us by credit card. I also received a 1099K from the merchant service that processes these credit card payments for the same amount. Do I have to include both of these 1099's on schedule c?===>No UNLESS the 1099s are for separate transactions ;plz read below; you should consider the amounts shown on Form 1099-K, along with all other amounts received, when calculating gross receipts for your income tax return.the 1099-K is a tax form that lets companies like PayPal and Amazon report how much money you made through them with your online store. the new 1099-K tax form is easily one of the simplest forms you can get from the payment settlement entity.aslongas you made $20K or more in the taxable year in 200 or more transactions from one payment processor, then you get the 1099-K. If you don’t fit both of those criteria, you don’t get it. You could make $20K but only in 199 transactions and the new form won’t come your way.
If I do, how do I show the IRS that I did not actually receive both amounts? I have not been successful in getting a corrected 1099 from the company.====>In your case, you just NEED to report the amt on your 1099K on Sch C line 1. I mean you need to enter the amounts reported to you on the 1099K on your tax return so that the IRS computers can match up your entries to amounts that have been reported to them. You’re responsible for keeping track of any business expenses you had and reporting them as deductions on your Sch C.The 1099-K was designed to track how much online sellers really owed as some weren’t reporting their taxes correctly. After you finish your taxes, you need to file the 1099-K away just in case although the chance is slim, a mistake could have been made by one of the payers If that happens you don’t want to be held liable and it always helps to have proof around. Remember, 1099K can still be useful. For erxample, you may not use Outright and aren’t exactly sure how much you made through a certain payment processor like PayPal. Or you may have tracked your money as a whole and didn’t even think of separating sales into sub-categories. In this case you can use the 1099-K as a “shooting point” to get an idea how much you owe
NOTE; assume you provide personal services in addition to selling goods,then, you may receive a Form 1099-MISC to report the payment of services over $600 in the year. the 1099-MISC is to be issued only for the payment of services in cash or by check; 1099-K is to be used for payments by credit card, electronic transfer, etc. However, don't be surprised if you receive a 1099-MISC for the payment of services by credit card; issuers may be confused by the change in reporting requirements.What you need to do as you receive both 1099MISC and 1099K for the same services: you need to contact the issuer of the 1099-MISC immediately. Have the payor reissue a corrected 1099-MISC to eliminate any payments that were made to you by a payment means reported on 1099-K. |