Block inc 1099-K

[Pacun]

In December 2024, Block is reporting 4K to my client on a 1099-K. Other months have 0 amounts. 

Client claims that she doesn't know what it is. Any suggestions on how people use that company when moving money among family member or others?

Than you in advance for your input.

[mcbreck]

https://www.irs.gov/businesses/what-to-do-with-form-1099-k

[BTS]

Not sure what program you are using.  But Proseries on the 1099k form has a section for stating that the 1099k was incorrectly issued or was for items sold at a loss.  That way the amount does not flow to the 1040.  Then attach a note explaining.

[Lee B]

15 hours ago, Pacun said:

In December 2024, Block is reporting 4K to my client on a 1099-K. Other months have 0 amounts. 

Client claims that she doesn't know what it is. Any suggestions on how people use that company when moving money among family member or others?

Than you in advance for your input.

This sounds like an annual merchant services activity report

[TexTaxToo]

On 1/24/2025 at 9:16 AM, mcbreck said:

https://www.irs.gov/businesses/what-to-do-with-form-1099-k

This has not been updated for TY2024.  There is now a field at the top of Schedule 1 for non-taxable amounts reported on a 1099-K - there is no need to report it and back it out.

By "Block", I assume you mean the company formerly known as "Square" which runs the "Cash App" payment app.  If the app is used for gifts or reimbursements among family and friends they shouldn't even issue a 1099-K.  But if they do, or if these were for sales of personal items at a loss, use the new field:  https://www.irs.gov/instructions/i1040gi#en_US_2024_publink1000131906