Do I owe tax on the full amount shown on my 1099-K?
Usually not. The form reports gross payments before fees, refunds, and costs. You're taxed on your actual profit, so we reconcile the gross figure to your real numbers.
Tax help
Got a 1099-K? Let's make sense of it.
A 1099-K can look alarming, but in most cases it's straightforward to reconcile — and we'll make sure you only pay tax on what's actually taxable.
Prepared by real tax specialists — with Enrolled Agent or CPA review when your return calls for it.
A 1099-K is an information form sent by payment platforms and online marketplaces reporting the gross amount of payments you received through them. It's important to understand that the figure on the form is gross — before fees, refunds, and the cost of whatever you sold — so it usually isn't the amount you actually owe tax on.
If the payments relate to a business or side hustle, that income generally gets reported, usually on a Schedule C, and we reconcile the gross figure on the form to your real numbers so your expenses and costs are accounted for. You're taxed on your profit, not the gross total.
Selling personal items at a loss — say, used furniture or old electronics for less than you paid — is generally not taxable. But those sales can still show up on a 1099-K, so they need to be reconciled on your return so the IRS sees that the amount isn't all taxable income.
What we do
How we help
- Reconcile the gross amount on your 1099-K to your actual income
- Report business or side-hustle income correctly, usually on a Schedule C
- Account for fees, refunds, and the cost of goods so you aren't overtaxed
- Properly handle personal items sold at a loss so they aren't treated as income
- Match the form to your records so the IRS figures line up with your return
- Set up estimated payments if the activity is an ongoing business
FAQ
Frequently asked questions
I only sold some old personal stuff. Is that taxable?
Selling personal items for less than you paid is generally not taxable. But it can still appear on a 1099-K, so we reconcile it on your return so it isn't mistaken for taxable income.
What if the 1099-K amount looks wrong?
It happens. We compare the form to your own payment records and help you address discrepancies, and if needed we can guide you on requesting a correction from the issuer.
Where does this income go on my return?
If it's from a business or side hustle, it generally goes on a Schedule C, where you also report related expenses. We make sure it's reported in the right place.
Let's sort this out together.
Tell us what you've got and we'll come back within one business day with the plan and the price · from a preparer who knows your line of work.
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