Form 1099-K reports payments you received through credit cards, debit cards, payment apps, online marketplaces, and other third-party payment networks. You may receive this form if you accepted electronic payments for goods or services through a payment settlement entity (PSE).
Common examples include payments processed through merchant card services or third-party platforms that handle transactions on your behalf.
The amount reported on Form 1099-K generally represents your gross payment transactions. Because it shows gross receipts, it may include amounts that were later refunded, fees charged by the payment processor, or other business-related adjustments. For that reason, keeping accurate records of your income and expenses is important.
How Do I Report Form 1099-K on Schedule C?
If the income reported on Form 1099-K is related to a business, self-employment activity, gig work, or side business, report it on Schedule C (Profit or Loss From Business).
To enter the income in the program:
- Go to Federal
- Select Income – Select My Forms
- Choose Profit or Loss From a Business (Schedule C)
- Complete the Business Information section
- If your business does not have a separate EIN or business address, leave those fields blank if applicable.
- Select the appropriate business type and continue.
- Open the Income section of Schedule C.
- Enter the Form 1099-K amount as Gross Receipts or Sales or Total Income From Work or Sales.
Multiple Forms 1099-K
If you received more than one Form 1099-K for the same business activity, combine the amounts and report the total income on that Schedule C.
How Do I Report Form 1099-K on Schedule F?
If the payments reported on Form 1099-K relate to farming activities, report the income on Schedule F (Profit or Loss From Farming).
To enter the income:
- Go to Federal
- Select Income – Select My Forms
- Choose Profit or Loss From Farming (Schedule F)
- Complete the farming business information.
- Enter the income as either:
- Sales of Livestock, or
- Sales of Products
Use the category that best matches the type of farming income you received.
Can I Deduct Expenses Against My 1099-K Income?
Yes. If the Form 1099-K reflects business or farming income, you can generally report ordinary and necessary expenses related to earning that income.
Common examples include:
- General business expenses
- Supplies and materials
- Vehicle expenses
- Equipment purchases and depreciation
- Professional fees
- Farm-related expenses (for Schedule F filers)
These expenses may reduce your taxable income by offsetting the income reported on Form 1099-K.
What If the Amount on My Form 1099-K Looks Incorrect?
If you believe the information on your Form 1099-K is incorrect:
- Review your records and transaction history.
- Contact the filer listed in the upper-left corner of the form.
- If you do not recognize the filer, contact the Payment Settlement Entity (PSE) listed on the form above your account number.
They can explain the reported amounts and help resolve any discrepancies. For more information, see our article I Received a 1099-K in Error. What do I Do?
Before You File
Remember that Form 1099-K reports payment activity, not necessarily your taxable profit. If you're reporting the income on Schedule C or Schedule F, be sure to include any eligible business or farming expenses. Accurate records can help ensure you're taxed on your actual net income rather than the total payments processed on your behalf.