1099K

I received this online yesterday. It shows the total paid to me last year from every company that pays thru that platform. It does not consider that several of those companies will be sending 1099's that I must report. Nor does it know how much I was paid in reimbursements that are not taxable.
I have a form that I created that shows me the total year's fees and one column for reimbursements. That part is easy to calculate.
Some companies do not use PayPal. ( a Closer Look)
I use Turbo tax and guess I will calculate how much of the total were fees and how much were reimbursements.
It appears that I will just need to add up the amount that was for reimbursements and subtract it from the total. Mileage will be a different deduction but when I get gas and the $1 item in the store, that will be reimbursement.

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More About Mystery Shopping Taxes

My guess is that the 1099-K for paypal is to be able to track and also get the people who think they don't have to report because they didn't get 1099.

I report it all. So if my gross payments were 20K from all shops and my 1099-K shows $5K from shops, I won't worry. I'll be reporting it all.

This is more to catch the people who don't report any.

Wondering if/when this will make it to ZELLE so they can track those payments as well. My renter pays me on zelle. I claim it as well as the deductions for interest and other expenses.

No 1099 or did not make $600 from a company, I have never reported those fees in 15 years ! Been audited twice, and no issues ever !

@claabe

You sound proud of yourself for making money and not paying taxes. I'm sure there are plenty of others like that as well. Maybe that is why a national sales tax or some other system would be better than what we have now.

@Insight wrote:

It appears that I will just need to add up the amount that was for reimbursements and subtract it from the total.

This, if applicable, IMO. Similar to previous years.

Yes, very proud. Rich people and companies use "legal loopholes" (however they do it, seems to be legal ??) During my audits, I told the IRS about not reporting them. I was told that it was correct ! Cha Ching !!! The government already gets enough of my money ! They need more...take it from the billionaires !!

I don't know why I keep getting sucked in to your drama. I quit.

Edited 1 time(s). Last edit at 01/28/2025 03:19AM by Morledzep.

UGH.
Somebody with an accounting background or TurboTax Expert user explain this please!
(I'm going to use round numbers to make this easier.)

EXAMPLE -

I shop for IPSOS (let's just use the SASSIE Platform for now).

I get a 1099NEC for $2000 (fees only) I think that is the form that we get? I don't have my tax stuff here.
I also get a 1099K for $5000 (fees and reimbursements)

So, that $2000 in fees is being reported in 2 places.

And for those who claim that you can't report income of less than $600 not included on a 1099, I have reported ALL of my income (some MSCs are only $100-$500 a year in fees) for over 25 years. Some years I report 10-30 MSCs on my Schedule C.

Yes. The $2,000 is being reported twice. UGH. The IRS is aware of this, so they know the IC's are having reimbursements included on the 1099K, which has all of it, fees + reimbursement. So, the sum of all the other 1099's that were from PayPal payers will be less than the 1099K total, if you had reimbursed amounts that show up on the 1099K.

Disclaimer: Not a tax professional, not tax advice. But yes, similar to what purpleicee stated.

I would think you only report the 2k. The IRS has transcripts of what's reported. You could even show "gross" earnings and un/reimbursed expenses.

You still report all income. Total up all of the self-employment income. Isn't $400 net earnings (after expenses) the threshold? 1099 $600 threshold reporting is for each entity/issuer.

Personally, I haven't received a 1099 from some MSCs. But I can add up my earnings.

Anyone who is not reporting earnings because they did not get a 1099 is doing it incorrectly and if you mentioned it to the IRS person on your audit and they said it is ok either they are clueless or they did not understand what you said. How exactly did you phrase that? There is some reason you had an audit as most people esp the non millionaires, do not get audited and you got audited twice. You seem Hxxl bent to not pay taxes to get back at the rich people. I am not a tax professional but many of us know quite a bit about this part of the tax law.
As for how to report income, the schedule C allows you to report your income, all of it. I use Turbo tax and have not sent them any 1099's ever.

claabe, you have overtaken johnb974!

nevermind, I realized that I don't owe claabe or john any explanation for anything in my life or circumstances.

Edited 1 time(s). Last edit at 01/28/2025 03:17AM by Morledzep.

For some reason, I like taxes and went nerdy over the weekend to brush up on some stuff. But I agree that the IRS isn't going to waste time and resources on certain things. Instead, an automated notice/letter would be sent through the mail. I heard that estimated payments and underpayment tax is becoming more of an issue.

I do not know who johnb974 is. As for my audits, gambling winnings.
Yes, I told them in detail about my earnings and not reporting companies
that were under $600. LAST TIME, no issues !
I also drive 70 in a 55 !! You people can be so serious.

[Morledzep]
nevermind, I realized that I don't owe claabe or john any explanation for anything in my life or circumstances.
*************************************************************************************************
I have no idea, what drama you are talking about ??? I do agree with you though, you don't owe me an explanation about anything. As far as I know, a forum is an opinion or some knowledge. I do not care who agrees with me. Too many authoritarian attitudes.

Only 70? sheeeet. I do that on the city streets. i'll pay all my taxes whether i get 1099 or not, but i drive my performance tesla like the beast that it is.

@claabe wrote:

I do not know who johnb974 is. As for my audits, gambling winnings.
Yes, I told them in detail about my earnings and not reporting companies
that were under $600. LAST TIME, no issues !
I also drive 70 in a 55 !! You people can be so serious.

Some states have a 1099-K reporting threshold lower than the federal $5,000 limit for 2024.
$1,000 Threshold - Illinois - New Jersey
$1,500 Threshold - Iowa - Louisiana - Maryland - Massachusetts - Minnesota - Rhode Island - South Carolina - Utah - Vermon - Virginia - Wisconsin
$2,500 Threshold - Arkansas

Curinos pays via Zelle. While you currently will not receive a 1099 via Zelle, Curinos will send you a 1099-NEC provided you made $600+. Of course you need to report even if you didn't reach $600+, but I know you do.

@hbbigdaddy wrote:

My guess is that the 1099-K for paypal is to be able to track and also get the people who think they don't have to report because they didn't get 1099.

I report it all. So if my gross payments were 20K from all shops and my 1099-K shows $5K from shops, I won't worry. I'll be reporting it all.

This is more to catch the people who don't report any.

Wondering if/when this will make it to ZELLE so they can track those payments as well. My renter pays me on zelle. I claim it as well as the deductions for interest and other expenses.

I spoke to my accountant (over 30 years with her). Technically, you guys and dolls are correct ! But, she said it is a gray area. Some companies report less then $600 and some don't. She said it is a crap shoot, if I choose not to report it. I love a good wager, I will probably roll the dice. My apologies to all.

@claabe wrote:

Yes, very proud. Rich people and companies use "legal loopholes" (however they do it, seems to be legal ??) During my audits, I told the IRS about not reporting them. I was told that it was correct ! Cha Ching !!! The government already gets enough of my money ! They need more...take it from the billionaires !!

that

This is entirely inaccurate. If you choose to under report your self employment income, that is your choice but please don't spread false information. All self employment earnings are income.

I got my 1099-K from PayPal only (Intouch Insite, IPSOS, Bare, Confero, RBG, Bestmark, Share Insite, etc).
the total is over 6K. But there are 50/50 fees and reimbursements. I am filling out the Schedule C. For mileage it is line 9. In which line shall I fill my reimbursements?

Shopping Eastern Pennsylvania since 2009

Gene: I have used Turbo Tax for ages. I report 1099-Ks and 1099-NECs as income on Schedule C, entering exactly the numbers on the forms(s). I deduct out the reimbursements and duplicate incomes under Business Expense>Other Common Business Expenses>Other Miscellaneous Expenses, where a table drops down into which you can type a description of the other miscellaneous expenses. I use "Cost of reimbursed expenses included on 1099-K" for one entry and "Duplicate compensation reported on both 1099-K and 1099-NEC" for another.

thanks a lot!!!!

Shopping Eastern Pennsylvania since 2009

I have done Tax Returns for a few years (for pay) and have to say that there are so many loop holes. This is just one of the attempts to get "gig" workers to pony up. The best way is to keep your receipts and a copy of the amount paid on each job - that way you can subtract it and show what your pay was or you can fill out a schedule C. Most likely you will not meet the threshold.

Mileage is easy as you have your address and the address you drive to, there are so many ways to add up the mileage and report this on Schedule C - my advice has always been go to a tax professional to get one or two returns completed and then you should be able to duplicate it. You have to pay attention to the Tax changes each year and so go to a tax professional every so many years.

If I do a mystery shop that is 8 miles from my house, do I get to count 8 or 16 for the round trip?

I always do the round trip. If there are multiple shops in a day I do the mileage from one shop to the next and then from the last one back home.

I can trace all shops I did per trip using Google maps.

Shopping Eastern Pennsylvania since 2009

Claabe, you are very accurate. I'm a CPA for 25 years. It would blow your mind to see how wealthy people cheat, hide, etc. on their taxes. You give advice and they choose to listen or not. Most of the time, as you said, "they roll the dice".

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