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<blockquote data-quote="SlugSlinger" data-source="post: 4072976" data-attributes="member: 7248"><p>It’s not the sending part, it’s the receiving part that the irs changed from 10,000 to 600. And PayPal is responsible for sending the 1099k to the recipient.</p><p></p><p>The key is to keep the paper trail for your returns. Again, there is not a tax liability since these transactions are not considered income.</p><p></p><p>And if you guys want to argue about this, here's the info from the IRS site. <a href="https://www.irs.gov/businesses/understanding-your-form-1099-k" target="_blank">Understanding Your Form 1099-K | Internal Revenue Service</a></p><p></p><p>The highlighted red text applies here.</p><p></p><p></p><p></p><h2>Who Sends Form 1099-K</h2><p>Payment card companies, payment apps and online marketplaces are required to file Form 1099-K with the IRS. They also must send a copy of the form to taxpayers by <strong>January 31</strong>.</p><p></p><h2>Who Gets Form 1099-K</h2><p>You should get Form 1099-K for these situations:</p><p></p><h3>If You Received Any Payments With Payment Cards</h3><p>This includes credit cards, debit cards and stored value cards (gift cards).</p><p></p><h3>If You Received Payments Over $600 With a Payment App or Online Marketplace</h3><p>This includes payments for a personal item you sold or for goods you sell, services you provide or property you rent through any:</p><p></p><ul> <li data-xf-list-type="ul">Peer-to-peer payment platform or digital wallet</li> <li data-xf-list-type="ul">Online marketplace (sale or resale of clothing, furniture and other items)</li> <li data-xf-list-type="ul">Craft or maker marketplace</li> <li data-xf-list-type="ul">Auction site</li> <li data-xf-list-type="ul">Car sharing or ride-hailing platform</li> <li data-xf-list-type="ul">Real estate marketplace</li> <li data-xf-list-type="ul">Ticket exchange or resale site</li> <li data-xf-list-type="ul">Crowdfunding platform</li> <li data-xf-list-type="ul">Freelance marketplace</li> </ul><p>Gifts or reimbursement of personal expenses from friends and family <a href="https://www.irs.gov/businesses/understanding-your-form-1099-k#shouldnt" target="_blank">should not be reported on Form 1099-K</a>. They are not payments for goods or services.</p><p></p><h3><span style="color: rgb(0, 0, 0)">$600 Reporting Threshold</span></h3><p><span style="color: rgb(0, 0, 0)">Payment apps and online marketplaces are required to file a Form 1099-K if the gross payments to you for goods and services are over $600.</span></p><p><span style="color: rgb(0, 0, 0)"></span></p><p><span style="color: rgb(0, 0, 0)">The $600 reporting threshold started with tax year 2023. There are no changes to what counts as income or how tax is calculated.</span></p><p><span style="color: rgb(0, 0, 0)"></span></p><p><span style="color: rgb(0, 0, 0)">The reporting threshold for third party settlement organizations, including payment apps and online marketplaces, was lowered to $600 by the <a href="https://www.congress.gov/bill/117th-congress/house-bill/1319" target="_blank">American Rescue Plan Act of 2021</a>. Find more information on the <a href="https://www.irs.gov/newsroom/form-1099-k-frequently-asked-questions-general#changes" target="_blank">change in reporting requirements</a>.</span></p><p></p><p><a href="https://www.irs.gov/businesses/understanding-your-form-1099-k#top" target="_blank">Back to top</a></p><p></p><h2><span style="font-size: 26px"><span style="color: rgb(184, 49, 47)">What Shouldn't Be Reported on Form 1099-K</span></span></h2><p><span style="font-size: 26px"><span style="color: rgb(184, 49, 47)">Money you received from friends and family as a gift or reimbursement of a personal expense should not be reported on a Form 1099-K. For example: Sharing the cost of a car ride or meal, receiving money for birthday or holiday gifts or getting repaid by a roommate for a household bill. These payments aren't taxable income.</span></span></p><p><span style="font-size: 26px"><span style="color: rgb(184, 49, 47)"></span></span></p><p><span style="font-size: 26px"><span style="color: rgb(184, 49, 47)">Be sure to note these types of payments as non-business when possible in the payment apps.</span></span></p><p><span style="font-size: 26px"><span style="color: rgb(184, 49, 47)"></span></span></p><p><span style="font-size: 26px"><span style="color: rgb(184, 49, 47)">Take these steps <a href="https://www.irs.gov/businesses/understanding-your-form-1099-k#error" target="_blank">if you receive a Form 1099-K in error</a>.</span></span></p><p></p><p><a href="https://www.irs.gov/businesses/understanding-your-form-1099-k#top" target="_blank">Back to top</a></p><p></p><h2>What to Do With Form 1099-K</h2><p>Here's what to do if you receive a Form 1099-K:</p><p></p><h3>Check the Information on the Form</h3><p>Review the information on the Form 1099-K to make sure it's correct.</p><p></p><p>Take these steps if:</p><p></p><ul> <li data-xf-list-type="ul"><a href="https://www.irs.gov/businesses/understanding-your-form-1099-k#error" target="_blank">You receive the form in error</a></li> <li data-xf-list-type="ul"><a href="https://www.irs.gov/businesses/understanding-your-form-1099-k#incorrect" target="_blank">The information is incorrect</a></li> <li data-xf-list-type="ul"><a href="https://www.irs.gov/businesses/understanding-your-form-1099-k#gross" target="_blank">The gross amount doesn't belong to you</a></li> </ul><h3>Review the Gross Payment Amount</h3><p>The gross payment amount (Box 1a) on Form 1099-K reports the total payments you received. It doesn't include adjustments for fees, credits, refunds, shipping, cash equivalents or discounts. These items are not income. You can deduct them from the gross amount.</p><p></p><p>Compare the gross payment amount to your records. These may include reports from payment apps or online marketplaces, payment card receipts or merchant statements. Use the records to:</p><p></p><ul> <li data-xf-list-type="ul">Confirm the gross payment amount is accurate</li> <li data-xf-list-type="ul">Check the gross amount for expenses you can deduct (fees, credits, refunds, shipping, refunds, etc.)</li> </ul><p><a href="https://www.irs.gov/businesses/small-businesses-self-employed/recordkeeping" target="_blank">Good recordkeeping</a> is important to support the income and deductible expenses you report on your tax return.</p><p></p><h3>Use Form 1099-K to Help Report Your Income</h3><p>Use Form 1099-K with your other tax records to help figure and report your correct income on your tax return.</p><p></p><p>How you report Form 1099-K payments on your tax return depends on the type of transactions you did:</p><p></p><ul> <li data-xf-list-type="ul"><a href="https://www.irs.gov/businesses/understanding-your-form-1099-k#sold" target="_blank">If you sold a personal item</a></li> <li data-xf-list-type="ul"><a href="https://www.irs.gov/businesses/understanding-your-form-1099-k#sell" target="_blank">If you sold goods, rented property or provided services</a></li> </ul><p><a href="https://www.irs.gov/businesses/understanding-your-form-1099-k#top" target="_blank">Back to top</a></p><p></p><h2>If You Sold a Personal Item</h2><p>You may get a Form 1099-K if you received payments for a personal item you sold through a payment app or online marketplace.</p><p></p><p>A personal item is something you owned for personal use such as a car, refrigerator, furniture, stereo, jewelry or silverware, etc.</p><p></p><p>How you report these payments on your tax return depends on whether you sold the item at a loss or a gain. If you sold a mix of personal items at a loss and a gain, report them separately.</p><p></p><h3>Personal Items Sold at a Loss</h3><p>A loss on the sale of a personal item isn't deductible.</p><p></p><p>If you sold personal items at a loss, you have 2 options to report the loss:</p><p></p><h4>Report on Schedule 1 (Form 1040)</h4><p>You can report and offset the Form 1099-K gross payment amount on <a href="https://www.irs.gov/pub/irs-pdf/f1040s1.pdf" target="_blank">Schedule 1 (Form 1040), Additional Income and Adjustments to Income</a>PDF.</p><p></p><p>Example: You receive a Form 1099-K for selling your couch online for $700, which is less than you paid for it.</p><p></p><p>On Schedule 1 (Form 1040):</p><p></p><ul> <li data-xf-list-type="ul"><strong>Enter the Form 1099-K gross payment amount (Box 1a) on Part I – Line 8z – Other Income: </strong>"Form 1099-K Personal Item Sold at a Loss, $700"</li> <li data-xf-list-type="ul"><strong>Offset the Form 1099-K gross payment amount (Box 1a) on Part II – Line 24z – Other Adjustments:</strong> "Form 1099-K Personal Item Sold at a Loss $700"</li> </ul><p>These 2 entries result in a $0 net effect on your adjusted gross income (AGI).</p><p></p><h4>Report on Form 8949</h4><p>You can also report the loss on <a href="https://www.irs.gov/forms-pubs/about-form-8949" target="_blank">Form 8949, Sales and Other Dispositions of Capital Assets</a>, which carries to <a href="https://www.irs.gov/forms-pubs/about-schedule-d-form-1040" target="_blank">Schedule D, Capital Gains and Losses</a>.</p><p></p><p><a href="https://www.irs.gov/businesses/understanding-your-form-1099-k#top" target="_blank">Back to top</a></p><p></p><h3>Personal Items Sold at a Gain</h3><p>A gain on the sale of a personal item is taxable.</p><p></p><p>If you receive a Form 1099-K for a personal item sold at a gain, report it on both:</p><p></p><ul> <li data-xf-list-type="ul"><a href="https://www.irs.gov/forms-pubs/about-form-8949" target="_blank">Form 8949, Sales and other Dispositions of Capital Assets</a></li> <li data-xf-list-type="ul"><a href="https://www.irs.gov/forms-pubs/about-schedule-d-form-1040" target="_blank">Schedule D (Form 1040), Capital Gains and Losses</a></li> </ul><p><a href="https://www.irs.gov/businesses/understanding-your-form-1099-k#top" target="_blank">Back to top</a></p><p></p><h2>If You Sell Goods, Rent Property or Provide Services</h2><p>You may get a Form 1099-K if you received payments through payment cards, payment apps or online marketplaces.</p><p></p><p>These transactions can include payments you received as a <a href="https://www.irs.gov/businesses/small-businesses-self-employed/manage-taxes-for-your-gig-work" target="_blank">gig worker</a>, freelancer or other independent contractor (<a href="https://www.irs.gov/businesses/small-businesses-self-employed/self-employed-individuals-tax-center" target="_blank">self-employed</a>). This may also include payments you received from selling items as <a href="https://www.irs.gov/newsroom/know-the-difference-between-a-hobby-and-a-business" target="_blank">a hobby</a>.</p><p></p><h3>Report Form 1099-K Payments and Other Income on Your Tax Return</h3><p>You must report all income you receive on your tax return. This may include the gross payment amount shown on Form 1099-K and amounts on other reporting documents like <a href="https://www.irs.gov/forms-pubs/about-form-1099-nec" target="_blank">Form 1099-NEC</a> or <a href="https://www.irs.gov/forms-pubs/about-form-1099-misc" target="_blank">Form 1099-MISC</a>. It should also include amounts not reported on forms, such as payments you receive by cash or check.</p><p></p><p>Here's where to report Form 1099-K payments on your tax return for goods and services you sold:</p><p></p><ul> <li data-xf-list-type="ul"><strong>Sole proprietor (gig workers, freelancers and other self-employed people)</strong> – <a href="https://www.irs.gov/forms-pubs/about-schedule-c-form-1040" target="_blank">Schedule C (Form 1040), Profit or Loss from Business (Sole Proprietorship)</a></li> <li data-xf-list-type="ul"><strong>Partnership</strong> – <a href="https://www.irs.gov/forms-pubs/about-schedule-e-form-1040" target="_blank">Schedule E, (Form 1040), Supplemental Income and Loss</a></li> <li data-xf-list-type="ul"><strong>Corporation</strong> – <a href="https://www.irs.gov/forms-pubs/about-form-1120" target="_blank">Form 1120, U.S. Corporation Income Tax Return</a> or <a href="https://www.irs.gov/forms-pubs/about-form-1120-s" target="_blank">Form 1120-S, U.S. Income Tax Return for an S Corporation</a></li> </ul><p><a href="https://www.irs.gov/businesses/small-businesses-self-employed/tips-on-rental-real-estate-income-deductions-and-recordkeeping" target="_blank">Rental income</a> may be reported on Schedule E or Schedule C, depending on your situation.</p><p></p><p><a href="https://www.irs.gov/businesses/understanding-your-form-1099-k#top" target="_blank">Back to top</a></p><p></p><h2>If You Get a Form 1099-K in Error</h2><p>You may get a Form 1099-K in error when the form:</p><p></p><ul> <li data-xf-list-type="ul">Reports payments that were gifts or reimbursements from family or friends</li> <li data-xf-list-type="ul">Doesn't belong to you or is a duplicate</li> </ul><p>If this happens:</p><p></p><ul> <li data-xf-list-type="ul">Contact the issuer immediately – see FILER on the top left corner of Form 1099-K</li> <li data-xf-list-type="ul">Keep a copy of the original form and all correspondence with the issuer for your records</li> </ul><p>Take these steps <a href="https://www.irs.gov/businesses/understanding-your-form-1099-k#corrected" target="_blank">if you can't get a corrected Form 1099-K</a>.</p><p></p><p><a href="https://www.irs.gov/businesses/understanding-your-form-1099-k#top" target="_blank">Back to top</a></p><p></p><h2>If Your Form 1099-K Is Incorrect</h2><p>Take the following steps if any of this information on the form is incorrect:</p><p></p><ul> <li data-xf-list-type="ul">Payee Taxpayer Identification Number (TIN)</li> <li data-xf-list-type="ul">Gross amount of payment card/third party network transactions</li> <li data-xf-list-type="ul">Number of payment transactions</li> <li data-xf-list-type="ul">Merchant Category Code (MCC)</li> </ul><p>Request a corrected form from the issuer – see FILER on the top left corner of Form 1099-K. If you don't recognize the issuer, contact the Payment Settlement Entity (PSE) on the bottom left corner of the form above your account number.</p><p></p><p>Keep a copy of the corrected Form 1099-K with your records, along with any correspondence you have with the issuer or PSE.</p><p></p><p>Don't contact the IRS. We can't correct your Form 1099-K.</p><p></p><h3>If You Can't Get a Corrected Form 1099-K</h3><p>Report the amount on <a href="https://www.irs.gov/pub/irs-pdf/f1040s1.pdf" target="_blank">Schedule 1 (Form 1040), Additional Income and Adjustments to Income</a>PDF.</p><p></p><p>Example: You receive Form 1099-K for $650 your roommate sent you for their share of rent.</p><p></p><p>On Schedule 1 (Form 1040):</p><p></p><ul> <li data-xf-list-type="ul"><strong>Enter the error on</strong> <strong>Part I – Line 8z – Other income</strong>: "Form 1099-K received in error, $650"</li> <li data-xf-list-type="ul"><strong>Adjust it on</strong> <strong>Part II – Line 24z – Other adjustments</strong>: "Form 1099-K received in error, $650"</li> </ul><p>These 2 entries note the error and result in a $0 net effect on your adjusted gross income (AGI).</p></blockquote><p></p>
[QUOTE="SlugSlinger, post: 4072976, member: 7248"] It’s not the sending part, it’s the receiving part that the irs changed from 10,000 to 600. And PayPal is responsible for sending the 1099k to the recipient. The key is to keep the paper trail for your returns. Again, there is not a tax liability since these transactions are not considered income. And if you guys want to argue about this, here's the info from the IRS site. [URL='https://www.irs.gov/businesses/understanding-your-form-1099-k']Understanding Your Form 1099-K | Internal Revenue Service[/URL] The highlighted red text applies here. [HEADING=1]Who Sends Form 1099-K[/HEADING] Payment card companies, payment apps and online marketplaces are required to file Form 1099-K with the IRS. They also must send a copy of the form to taxpayers by [B]January 31[/B]. [HEADING=1]Who Gets Form 1099-K[/HEADING] You should get Form 1099-K for these situations: [HEADING=2]If You Received Any Payments With Payment Cards[/HEADING] This includes credit cards, debit cards and stored value cards (gift cards). [HEADING=2]If You Received Payments Over $600 With a Payment App or Online Marketplace[/HEADING] This includes payments for a personal item you sold or for goods you sell, services you provide or property you rent through any: [LIST] [*]Peer-to-peer payment platform or digital wallet [*]Online marketplace (sale or resale of clothing, furniture and other items) [*]Craft or maker marketplace [*]Auction site [*]Car sharing or ride-hailing platform [*]Real estate marketplace [*]Ticket exchange or resale site [*]Crowdfunding platform [*]Freelance marketplace [/LIST] Gifts or reimbursement of personal expenses from friends and family [URL='https://www.irs.gov/businesses/understanding-your-form-1099-k#shouldnt']should not be reported on Form 1099-K[/URL]. They are not payments for goods or services. [HEADING=2][COLOR=rgb(0, 0, 0)]$600 Reporting Threshold[/COLOR][/HEADING] [COLOR=rgb(0, 0, 0)]Payment apps and online marketplaces are required to file a Form 1099-K if the gross payments to you for goods and services are over $600. The $600 reporting threshold started with tax year 2023. There are no changes to what counts as income or how tax is calculated. The reporting threshold for third party settlement organizations, including payment apps and online marketplaces, was lowered to $600 by the [URL='https://www.congress.gov/bill/117th-congress/house-bill/1319']American Rescue Plan Act of 2021[/URL]. Find more information on the [URL='https://www.irs.gov/newsroom/form-1099-k-frequently-asked-questions-general#changes']change in reporting requirements[/URL].[/COLOR] [URL='https://www.irs.gov/businesses/understanding-your-form-1099-k#top']Back to top[/URL] [HEADING=1][SIZE=7][COLOR=rgb(184, 49, 47)]What Shouldn't Be Reported on Form 1099-K[/COLOR][/SIZE][/HEADING] [SIZE=7][COLOR=rgb(184, 49, 47)]Money you received from friends and family as a gift or reimbursement of a personal expense should not be reported on a Form 1099-K. For example: Sharing the cost of a car ride or meal, receiving money for birthday or holiday gifts or getting repaid by a roommate for a household bill. These payments aren't taxable income. Be sure to note these types of payments as non-business when possible in the payment apps. Take these steps [URL='https://www.irs.gov/businesses/understanding-your-form-1099-k#error']if you receive a Form 1099-K in error[/URL].[/COLOR][/SIZE] [URL='https://www.irs.gov/businesses/understanding-your-form-1099-k#top']Back to top[/URL] [HEADING=1]What to Do With Form 1099-K[/HEADING] Here's what to do if you receive a Form 1099-K: [HEADING=2]Check the Information on the Form[/HEADING] Review the information on the Form 1099-K to make sure it's correct. Take these steps if: [LIST] [*][URL='https://www.irs.gov/businesses/understanding-your-form-1099-k#error']You receive the form in error[/URL] [*][URL='https://www.irs.gov/businesses/understanding-your-form-1099-k#incorrect']The information is incorrect[/URL] [*][URL='https://www.irs.gov/businesses/understanding-your-form-1099-k#gross']The gross amount doesn't belong to you[/URL] [/LIST] [HEADING=2]Review the Gross Payment Amount[/HEADING] The gross payment amount (Box 1a) on Form 1099-K reports the total payments you received. It doesn't include adjustments for fees, credits, refunds, shipping, cash equivalents or discounts. These items are not income. You can deduct them from the gross amount. Compare the gross payment amount to your records. These may include reports from payment apps or online marketplaces, payment card receipts or merchant statements. Use the records to: [LIST] [*]Confirm the gross payment amount is accurate [*]Check the gross amount for expenses you can deduct (fees, credits, refunds, shipping, refunds, etc.) [/LIST] [URL='https://www.irs.gov/businesses/small-businesses-self-employed/recordkeeping']Good recordkeeping[/URL] is important to support the income and deductible expenses you report on your tax return. [HEADING=2]Use Form 1099-K to Help Report Your Income[/HEADING] Use Form 1099-K with your other tax records to help figure and report your correct income on your tax return. How you report Form 1099-K payments on your tax return depends on the type of transactions you did: [LIST] [*][URL='https://www.irs.gov/businesses/understanding-your-form-1099-k#sold']If you sold a personal item[/URL] [*][URL='https://www.irs.gov/businesses/understanding-your-form-1099-k#sell']If you sold goods, rented property or provided services[/URL] [/LIST] [URL='https://www.irs.gov/businesses/understanding-your-form-1099-k#top']Back to top[/URL] [HEADING=1]If You Sold a Personal Item[/HEADING] You may get a Form 1099-K if you received payments for a personal item you sold through a payment app or online marketplace. A personal item is something you owned for personal use such as a car, refrigerator, furniture, stereo, jewelry or silverware, etc. How you report these payments on your tax return depends on whether you sold the item at a loss or a gain. If you sold a mix of personal items at a loss and a gain, report them separately. [HEADING=2]Personal Items Sold at a Loss[/HEADING] A loss on the sale of a personal item isn't deductible. If you sold personal items at a loss, you have 2 options to report the loss: [HEADING=3]Report on Schedule 1 (Form 1040)[/HEADING] You can report and offset the Form 1099-K gross payment amount on [URL='https://www.irs.gov/pub/irs-pdf/f1040s1.pdf']Schedule 1 (Form 1040), Additional Income and Adjustments to Income[/URL]PDF. Example: You receive a Form 1099-K for selling your couch online for $700, which is less than you paid for it. On Schedule 1 (Form 1040): [LIST] [*][B]Enter the Form 1099-K gross payment amount (Box 1a) on Part I – Line 8z – Other Income: [/B]"Form 1099-K Personal Item Sold at a Loss, $700" [*][B]Offset the Form 1099-K gross payment amount (Box 1a) on Part II – Line 24z – Other Adjustments:[/B] "Form 1099-K Personal Item Sold at a Loss $700" [/LIST] These 2 entries result in a $0 net effect on your adjusted gross income (AGI). [HEADING=3]Report on Form 8949[/HEADING] You can also report the loss on [URL='https://www.irs.gov/forms-pubs/about-form-8949']Form 8949, Sales and Other Dispositions of Capital Assets[/URL], which carries to [URL='https://www.irs.gov/forms-pubs/about-schedule-d-form-1040']Schedule D, Capital Gains and Losses[/URL]. [URL='https://www.irs.gov/businesses/understanding-your-form-1099-k#top']Back to top[/URL] [HEADING=2]Personal Items Sold at a Gain[/HEADING] A gain on the sale of a personal item is taxable. If you receive a Form 1099-K for a personal item sold at a gain, report it on both: [LIST] [*][URL='https://www.irs.gov/forms-pubs/about-form-8949']Form 8949, Sales and other Dispositions of Capital Assets[/URL] [*][URL='https://www.irs.gov/forms-pubs/about-schedule-d-form-1040']Schedule D (Form 1040), Capital Gains and Losses[/URL] [/LIST] [URL='https://www.irs.gov/businesses/understanding-your-form-1099-k#top']Back to top[/URL] [HEADING=1]If You Sell Goods, Rent Property or Provide Services[/HEADING] You may get a Form 1099-K if you received payments through payment cards, payment apps or online marketplaces. These transactions can include payments you received as a [URL='https://www.irs.gov/businesses/small-businesses-self-employed/manage-taxes-for-your-gig-work']gig worker[/URL], freelancer or other independent contractor ([URL='https://www.irs.gov/businesses/small-businesses-self-employed/self-employed-individuals-tax-center']self-employed[/URL]). This may also include payments you received from selling items as [URL='https://www.irs.gov/newsroom/know-the-difference-between-a-hobby-and-a-business']a hobby[/URL]. [HEADING=2]Report Form 1099-K Payments and Other Income on Your Tax Return[/HEADING] You must report all income you receive on your tax return. This may include the gross payment amount shown on Form 1099-K and amounts on other reporting documents like [URL='https://www.irs.gov/forms-pubs/about-form-1099-nec']Form 1099-NEC[/URL] or [URL='https://www.irs.gov/forms-pubs/about-form-1099-misc']Form 1099-MISC[/URL]. It should also include amounts not reported on forms, such as payments you receive by cash or check. Here's where to report Form 1099-K payments on your tax return for goods and services you sold: [LIST] [*][B]Sole proprietor (gig workers, freelancers and other self-employed people)[/B] – [URL='https://www.irs.gov/forms-pubs/about-schedule-c-form-1040']Schedule C (Form 1040), Profit or Loss from Business (Sole Proprietorship)[/URL] [*][B]Partnership[/B] – [URL='https://www.irs.gov/forms-pubs/about-schedule-e-form-1040']Schedule E, (Form 1040), Supplemental Income and Loss[/URL] [*][B]Corporation[/B] – [URL='https://www.irs.gov/forms-pubs/about-form-1120']Form 1120, U.S. Corporation Income Tax Return[/URL] or [URL='https://www.irs.gov/forms-pubs/about-form-1120-s']Form 1120-S, U.S. Income Tax Return for an S Corporation[/URL] [/LIST] [URL='https://www.irs.gov/businesses/small-businesses-self-employed/tips-on-rental-real-estate-income-deductions-and-recordkeeping']Rental income[/URL] may be reported on Schedule E or Schedule C, depending on your situation. [URL='https://www.irs.gov/businesses/understanding-your-form-1099-k#top']Back to top[/URL] [HEADING=1]If You Get a Form 1099-K in Error[/HEADING] You may get a Form 1099-K in error when the form: [LIST] [*]Reports payments that were gifts or reimbursements from family or friends [*]Doesn't belong to you or is a duplicate [/LIST] If this happens: [LIST] [*]Contact the issuer immediately – see FILER on the top left corner of Form 1099-K [*]Keep a copy of the original form and all correspondence with the issuer for your records [/LIST] Take these steps [URL='https://www.irs.gov/businesses/understanding-your-form-1099-k#corrected']if you can't get a corrected Form 1099-K[/URL]. [URL='https://www.irs.gov/businesses/understanding-your-form-1099-k#top']Back to top[/URL] [HEADING=1]If Your Form 1099-K Is Incorrect[/HEADING] Take the following steps if any of this information on the form is incorrect: [LIST] [*]Payee Taxpayer Identification Number (TIN) [*]Gross amount of payment card/third party network transactions [*]Number of payment transactions [*]Merchant Category Code (MCC) [/LIST] Request a corrected form from the issuer – see FILER on the top left corner of Form 1099-K. If you don't recognize the issuer, contact the Payment Settlement Entity (PSE) on the bottom left corner of the form above your account number. Keep a copy of the corrected Form 1099-K with your records, along with any correspondence you have with the issuer or PSE. Don't contact the IRS. We can't correct your Form 1099-K. [HEADING=2]If You Can't Get a Corrected Form 1099-K[/HEADING] Report the amount on [URL='https://www.irs.gov/pub/irs-pdf/f1040s1.pdf']Schedule 1 (Form 1040), Additional Income and Adjustments to Income[/URL]PDF. Example: You receive Form 1099-K for $650 your roommate sent you for their share of rent. On Schedule 1 (Form 1040): [LIST] [*][B]Enter the error on[/B] [B]Part I – Line 8z – Other income[/B]: "Form 1099-K received in error, $650" [*][B]Adjust it on[/B] [B]Part II – Line 24z – Other adjustments[/B]: "Form 1099-K received in error, $650" [/LIST] These 2 entries note the error and result in a $0 net effect on your adjusted gross income (AGI). [/QUOTE]
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