1099k + 1099NEC

I do independent contract work for a client who pays my invoices via PayPal. This year I received a 1099NEC from the client as well as a 1099K from PayPal for the same overlapping income. I am not sure what to do in this situation. It is appearing as if my income is nearly double what it truly was.
Best Answer
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Hi jdove,
The 1099-K is basically a reminder that you may need to report income on your return. Since you already reported the 1099-NEC, you do not need to report the 1099-K in the business income section on your Schedule C.
Sometimes a 1099-K reports more income than the 1099-NEC. It does, you may need to report other income not reported on Form 1099-NEC.
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Answers
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What a relief! Thank you for your response!
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I have the same situation. Paypal lowered the limit from $20,000 to just $600 to issue 1099-K. I have some freelance bookkeeping and a little tax prep work that is paid through Paypal. I issued my own 1099-NECs as per usual and two days later surprise surprise- there's a 1099-K with same income. I would not advise reporting the 1099-K double income in gross sales and then backing it out with an "expense". Spot on MatthewD- as long as 1099-K amount doesn't exceed your gross sales per tax return, all good.
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I've decided go ahead and have the 1099-NECs voided/corrected to zero before filing since income was all included on paypal 1099-K. My accounting mind tells me to file absolutely accurate so as to avoid confusion. Going forward, very important to issue 1099NECs only for payments by cash or check and make sure not to report same income twice.
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