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Barbara
Barbara, Enrolled Agent
Category: Tax
Satisfied Customers: 2822
Experience:  18+ years of experience in tax preparation; 25+ years of experience as a real estate/corporate paralegal.
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The past 3 years I have been filing my 1099K as a second

Customer Question

The past 3 years I have been filing my 1099K as a second schedule C for my business.
I would just put 1099k sales $90,000 misc expenses $85,000 income $5,000
My main income on another schedule C from my 1099 misc.Before the 1099K I would just add the $5,000 income to my main schedule.This year I have been told that was wrong and every tax person I talk to has given me a different story some say no need to even report it just do it the way you did it in 2012. with of 1099K. The IRS says no need just for information.
Very confused
Submitted: 7 months ago.
Category: Tax
Expert:  Barbara replied 7 months ago.
Welcome to Just Answer. My name is ***** ***** I will be happy to assist you.If the 1099-K and 1099-MISC you receive are both for the SAME BUSINESS, you would report both on the same Schedule C rather than generating two separate Schedule C's. However, all the IRS cares about is that you report all income, which you are doing.Please let me know if I can assist you further.Thank you and best regards,Barb
Customer: replied 7 months ago.
So, I can put on my Schedule C
1099k sales $90,000 misc expenses $85,000 income $5,000
also
$80,000 from my 1099 misc total $85,000This will make my total income $170,000. Which is not really correct, as the $90,000 is just sales.
On my turbo tax its says there is no place to enter info from 1099K but just add the income on my Schedule C.The $90,000 on my 1099K is gross amount of payment transactions. not income. Does that really get added as income on my
Schedule C. It like double my actual income.My question is do I need to put that 1099K gross amount of payment transactions $90,000 on my Schedule C.
When almost all my income is already reported on my 1099 misc as $80,000.
My main income is as a realtor and that income is on my 1099 misc.
The 1099K is sales for some vacation rentals which I get paid as a commission on my 1099 misc.
Just don't know where to put the 1099k figure of credit card sales.
Expert:  Barbara replied 7 months ago.
Thank you for the additional information.As I mentioned, you will use two separate Schedule C's if you have 2 separate businesses.If you have one business, you will include your gross income from all sources (1099-MISC and 1099-K). The 1099-MISC will be added as a 1099-MISC and the 1099-K will be added as "general income." You will then deduct your expenses in connection with the business to arrive at your net income (the amount on which you pay tax).
Expert:  Barbara replied 7 months ago.
Just following up with you to see if you have any other questions or concerns. If so, please come back to me here, and I will be happy to assist you.Best regards,Barb

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