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UGH - Tax quickie question on PayPal Payments

March 29, 2023 01:38PM
I got a 1099 NEC from IPSOS, who pay me through PayPal. I also got a 1099 K from PayPal which INCLUDE the payments from IPSOS. So, it is showing as double income.

I will be going to a tax consultant for proper handling of this - but wanted to ask how to overcome this double reporting on my taxes this year?

Sorry if this is a repeat question.

Edited 1 time(s). Last edit at 03/29/2023 01:39PM by Chix.
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March 29, 2023 01:52PM
IMHO, IPSOS should not have sent you a 1099 NEC, but they did. This is what I would do. I would list both on my tax return. I would then deduct the amount of the IPSOS payments as a business expense and label it as a duplicated item. That way, if you are ever audited, you can say that you did list it and you can show them where and then explain why you deducted it in a different place. Of course, you will need records to show what went into the PayPal 1099 total.

Shopping Southeast Pennsylvania, Delaware above the canal, and South Jersey since 2008
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March 30, 2023 09:05PM
Just input the one from Ipsos. Ignore the other.

It is not showing as double income. The IRS knows the difference between the two types of forms, and they have separate purposes.
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April 01, 2023 09:59PM
Humble or honest opinions do not matter when it comes to IRS rules for reporting. Your NEC receipt is correct provided IPSOS accounted properly for it.
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April 02, 2023 12:18AM
Well but do not ignore the other as if the paypal 1099 has income reported on it that is not from IPSOS you still need to report that income once. This advice is not necessarily for the OP who may know this but for others reading the part of the below advice saying to ignore the Paypal who might take that literally.
@mystery2me wrote:

Just input the one from Ipsos. Ignore the other.

It is not showing as double income. The IRS knows the difference between the two types of forms, and they have separate purposes.
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