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View Full Version : 1099 k
luvcamerasnic
02-04-2012, 06:06 AM
So, I just got my 1099 K. I have read the other threads. However, I am not seeing a good solution yet for not double reporting (100K and 1099-misc from some clients). Has anyone found the answer? I have always done my own taxes and intend to do so again (this is so new I doubt the CPA I know would know the answer either. . . )
ebookwriter1
02-04-2012, 09:06 AM
So, I just got my 1099 K. I have read the other threads. However, I am not seeing a good solution yet for not double reporting (100K and 1099-misc from some clients). Has anyone found the answer? I have always done my own taxes and intend to do so again (this is so new I doubt the CPA I know would know the answer either. . . )
The 1099-K is just an informational report. They realize that you might be reporting more on your return than shows on your 1099-K; the IRS just wants to be sure that you are reporting at least as much as the amount on the 1099-K. People used to report less income because they would hide money in Paypal. Now they can't do that.
Here is more info:
Where to enter amounts from 1099-K
Enter the amounts reported to you on the 1099s on your tax return so that the IRS computers can match up your entries to amounts that have been reported to them. Unfortunately, this year, the tax return is confusing. All of the forms for business returns have a new line for entering amounts from Forms 1099-K. For example, Schedule C of Form 1040 for sole proprietors and one-member limited liability companies has a new line 1a for entering amounts from Forms 1099-K.
However, the IRS has deferred the requirement for reporting 1099-K amounts on the new line. Instructions to all the business returns, including Schedule C of Form 1040, say to enter zero on line designated for reporting amounts from Forms 1099-K, and instead report such amounts, along with other gross receipts, on the line for all gross receipts. Presumably, this is where the IRS computers will be looking for 1099-K transactions.
Watch for duplicate reporting
If your unincorporated business provides personal services in addition to selling goods, you may receive a Form 1099-MISC to report the payment of services over $600 in the year. This 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 this year.
What to do if you receive both 1099s for the same services: 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.
The 1099-K is just an informational report. They realize that you might be reporting more on your return than shows on your 1099-K; the IRS just wants to be sure that you are reporting at least as much as the amount on the 1099-K. People used to report less income because they would hide money in Paypal. Now they can't do that.
Here is more info:
Where to enter amounts from 1099-K
Enter the amounts reported to you on the 1099s on your tax return so that the IRS computers can match up your entries to amounts that have been reported to them. Unfortunately, this year, the tax return is confusing. All of the forms for business returns have a new line for entering amounts from Forms 1099-K. For example, Schedule C of Form 1040 for sole proprietors and one-member limited liability companies has a new line 1a for entering amounts from Forms 1099-K.
However, the IRS has deferred the requirement for reporting 1099-K amounts on the new line. Instructions to all the business returns, including Schedule C of Form 1040, say to enter zero on line designated for reporting amounts from Forms 1099-K, and instead report such amounts, along with other gross receipts, on the line for all gross receipts. Presumably, this is where the IRS computers will be looking for 1099-K transactions.
Watch for duplicate reporting
If your unincorporated business provides personal services in addition to selling goods, you may receive a Form 1099-MISC to report the payment of services over $600 in the year. This 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 this year.
What to do if you receive both 1099s for the same services: 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.
luvcamerasnic
02-04-2012, 01:37 PM
See, this is not totally accurate (yes, I found this blog post too). DMS, for instance, is not going to not issue 1099-Misc to their writers. They have no way of knowing which ones met the threshold and which did not.
HOWEVER, I found the answer, and I am going to post it here for those who might be in the same boat I am. Basically, the IRS is not requiring you to report the 1099k, but to report business as usual. Since it was posted Feb 2012, it is apparently very new information.
Clarification to the Instructions for Schedule C, E, & F (Form 1040) on Reporting Form 1099-K Amounts -- 31-JAN-2012 (http://www.irs.gov/formspubs/article/0,,id=253098,00.html)
HOWEVER, I found the answer, and I am going to post it here for those who might be in the same boat I am. Basically, the IRS is not requiring you to report the 1099k, but to report business as usual. Since it was posted Feb 2012, it is apparently very new information.
Clarification to the Instructions for Schedule C, E, & F (Form 1040) on Reporting Form 1099-K Amounts -- 31-JAN-2012 (http://www.irs.gov/formspubs/article/0,,id=253098,00.html)
luvcamerasnic
02-04-2012, 05:40 PM
found the answer!!! Clarification to the Instructions for Schedule C, E, & F (Form 1040) on Reporting Form 1099-K Amounts -- 31-JAN-2012 (http://www.irs.gov/formspubs/article/0,,id=253098,00.html)
anng
02-05-2012, 04:14 AM
DMS, for instance, is not going to not issue 1099-Misc to their writers.
Just as a note DMS sent a 1099-MISC to me, and I know others have gotten them, so they did send them out.
When I talked to the IRS's help desk, they said you report the 1099K income where it says to and then for the 1099 MISC entries, where it says list your adjusted 1099MISC income and gives a blank to explain why you're changing what appears on line 7, they said to put that the income was also reported on the 1099K form. That was before this January 31st change though, so I'm really glad I ended up not quite earning enough for the 1099K in the end.
Just as a note DMS sent a 1099-MISC to me, and I know others have gotten them, so they did send them out.
When I talked to the IRS's help desk, they said you report the 1099K income where it says to and then for the 1099 MISC entries, where it says list your adjusted 1099MISC income and gives a blank to explain why you're changing what appears on line 7, they said to put that the income was also reported on the 1099K form. That was before this January 31st change though, so I'm really glad I ended up not quite earning enough for the 1099K in the end.
luvcamerasnic
02-05-2012, 06:14 AM
I miss-typed. I meant to say "DMS is NOT going to RE-issue the 1009-MISC." I also have this document.
I also plan to call the IRS on Monday and get clarification as well.
I also plan to call the IRS on Monday and get clarification as well.
anng
02-05-2012, 07:15 AM
I miss-typed. I meant to say "DMS is NOT going to RE-issue the 1009-MISC." I also have this document.
I also plan to call the IRS on Monday and get clarification as well.
In the end, I'm betting a lot of returns will get booted by the computer system this year for hand checking. It's happened to me before and it delays your refund by 3 to 4 weeks but in the end it seems to go through okay.
I also plan to call the IRS on Monday and get clarification as well.
In the end, I'm betting a lot of returns will get booted by the computer system this year for hand checking. It's happened to me before and it delays your refund by 3 to 4 weeks but in the end it seems to go through okay.
luvcamerasnic
02-05-2012, 06:11 PM
Refund? What is that? I always have a balance. . . .
anng
02-06-2012, 02:51 AM
Refund? What is that? I always have a balance. . . .
:-) We always overpay. My husband has single 0 taken out of his pay and I'll pay the full 30% my acct. told me to pay years ago so that we were certain to be paying enough.
:-) We always overpay. My husband has single 0 taken out of his pay and I'll pay the full 30% my acct. told me to pay years ago so that we were certain to be paying enough.
