1099K

[Terry D EA]

Sch C client received a 1099K from their merchant services company. There is no input entry for a 1099K. At first thought, I would think entering it on Line referencing the 1099K would be the correct way to enter this. Any other suggestions?

[Gail in Virginia]

My suggestion would be to ignore it, unless it is more than your client reported in total sales.  Then my suggestion would be to fire the client.

[Terry D EA]

Well I certainly wouldn't want to ignore it in this case. Total sales were 600K and 80K were from credit card sales. I did itemize the income sources on Sch C line 1. That way the detail is reported and if the IRS would question, then we have it and the docs to back it up.

[ILLMAS]

I second the ignore, just was as long as the overall sales are greater then the 1099K.

[Tax Prep by Deb]

Just make sure that the total sales include the income from the 1099K.  If it does, then there is nothing else to do.  If you want to do two separate lines, enter the 1099-k income and then on the next line enter the remainder.  When the 1099K's first came out the schedule C had a place to input the amount, however either the following year or the year after it was deleted.  The important thing is that total income is reported.

For example, here a lot of my hair dressers are using square.  The print out the 1099K and if that was all they turned into me I would question it, what about cash, checks, ect... But if they give me a total figure that is more than the 1099K I would make the two line entry, the one for the 1099K and the other for the remainder of the income, to total the total income being reported.