Money you received from friends or family as a gift or reimbursement of a personal expense should not be reported on a Form 1099-K. If you have payments that should not be taxed reported on your 1099-K, you will want to contact the issuer of the form and ask for it to be corrected.
What if I cannot get my 1099-K corrected?
If you unable to have the 1099-K corrected, follow the steps below to report any nontaxable payments reported on your 1099-K.
- Federal Section
- Income
- Less Common Income
- Other Income Not Reported Elsewhere
- From the dropdown description menu, select "Other Income" then enter "Form 1099-K received in error, $(amount)" for the box labeled Description of other income.
- Enter the amount of income, then press continue to save your entry
You will then need to make another entry to remove the income from the return. Please follow these step to remove the income form the return per IRS guidelines.
- Federal Section
- Deductions
- Adjustments to Income
- Other Adjustments
- Other Adjustments Not Listed Above
- Enter the Description as 1099-K received in error
- Enter the amount that should not be considered income on the 1099-K