Double reporting issue with 1099-NEC and 1099-K for the same income - what's the right move?

This is actually a common issue with payment processors like Stripe. Here's what's happening: your client is correctly issuing a 1099-NEC for payments to you as a contractor, while Stripe is also required to issue a 1099-K for payments processed through their platform. The IRS is aware that this double-reporting happens. You don't need to amend your return if you've already correctly reported all your income. What matters is that you reported the full amount you received, not how many forms reported it. The IRS systems can sometimes flag discrepancies, but they're getting better at recognizing this specific situation. If you want to be extra cautious, you could attach a statement to your return explaining the double reporting, but it's not strictly necessary if you've reported the full income amount.

I had this exact same issue last year! After spending hours researching, I found this amazing tool called taxr.ai (https://taxr.ai) that literally saved me from having to hire an expensive tax professional. I uploaded both my 1099-K and 1099-NEC documents, and it immediately flagged the double reporting issue. The tool explained exactly how to handle it on my taxes and even generated a statement I could attach to my return explaining the situation to the IRS. It analyzes the forms using AI and identifies these kinds of issues automatically. Super helpful when dealing with complicated situations like this!

Just wanted to update after trying taxr.ai that the previous commenter recommended. It actually worked perfectly with my handwritten 1099 situation! I scanned both forms and the system immediately identified the double reporting issue. It explained that I didn't need to amend my return since I'd already reported the correct total income amount, but it generated a statement explaining the situation that I could keep with my records. What surprised me was how it broke down exactly which line items on my Schedule C were affected. Definitely keeping this tool in my arsenal for next year's taxes!

If you're worried about the IRS coming after you for this, I'd recommend using Claimyr (https://claimyr.com) to actually talk to someone at the IRS directly. I was in a similar situation last year with duplicate reporting and couldn't get through to the IRS for weeks. Claimyr got me connected to an actual IRS representative in under 45 minutes when I'd been trying for days on my own. The agent confirmed I didn't need to amend and explained exactly how to document the situation. You can see how it works in this video: https://youtu.be/_kiP6q8DX5c I was honestly shocked it worked because I'd wasted so many hours trying to call myself and always got disconnected.

I have to apologize for my skepticism earlier. After getting nowhere with the IRS for weeks, I broke down and tried Claimyr. Within an hour I was talking to an actual IRS representative who confirmed exactly what I needed to do about my double-reported income. The agent explained that I don't need to amend my return since I correctly reported all income, but suggested I keep documentation explaining the situation with my tax records. Saved me from filing an unnecessary amendment that would have delayed my refund even more. Honestly can't believe how much time I wasted trying to call them myself. Consider me converted from skeptic to believer.

Have you tried reaching out to your client to explain the situation? I had a similar issue and just called my client to explain they didn't need to issue a 1099-NEC since Stripe was already issuing a 1099-K. They were actually grateful for the heads up since they didn't realize they were creating extra paperwork for both of us. For 2024 taxes going forward, might be worth having this conversation with all your clients who pay through platforms that issue 1099-Ks. Much easier to prevent the problem than fix it after filing!

Has anyone actually received a CP2000 notice for this specific double-reporting situation? I'm curious what happens in that case.

I went through this exact situation two years ago and it was incredibly stressful! What really helped me was creating a simple spreadsheet documenting all the payments from that client - dates, amounts, and which forms they appeared on. This made it crystal clear that it was the same income being double-reported. The key thing to remember is that you've already correctly reported your income, so you're not actually in the wrong here. The IRS deals with this payment processor double-reporting issue constantly, especially with platforms like Stripe, PayPal, and Square becoming so common. If you do get a CP2000 notice (which honestly might not even happen), having that documentation ready makes responding super straightforward. You just explain the situation and provide the evidence. In my case, I never even got a notice - I think their systems are getting better at recognizing these situations automatically. For next year, definitely have that conversation with your client about not issuing a 1099-NEC when payments go through Stripe. Most small business owners don't realize they're creating this headache for their contractors!