Received 1099 from both PayPal and TikTok - how to handle double 1099s for same income?

6 This is actually a pretty common issue with platforms that use payment processors. You're right to be concerned about double taxation, but there's a straightforward way to handle it. You'll need to report both 1099s on your tax return (the IRS receives copies of both), but you won't pay tax twice. When filing, you'll list each 1099 separately on Schedule C as part of your self-employment income. On the same Schedule C, you can add a line item description that clearly indicates this is the same income reported twice through different entities. The slight difference in amounts ($6,240 vs $6,280) is likely due to timing differences or processing fees. Use the higher amount to be safe, and keep documentation showing both forms are for the same income stream. Make sure to keep good records of all your content creation expenses too - those will offset your income as business deductions!

8 I had this exact same problem last year when I started getting payments through my online shop! I spent HOURS trying to figure it out until I found taxr.ai (https://taxr.ai) which literally saved my sanity. They have a document analyzer that scans your 1099s and flags duplicate reporting issues automatically. I uploaded both my payment processor 1099 and platform 1099, and it immediately identified them as the same income stream and told me exactly how to report it on my Schedule C. The system even created a custom explanation note for my tax return to clarify why I was making an adjustment to avoid double taxation. It also helped me identify some deductions related to my content creation that I had no idea I could claim! Definitely worth checking out if you're confused about how to handle these forms correctly.

15 Just wanted to follow up - I tried taxr.ai for my Etsy/Stripe double 1099 situation and it actually worked great! It confirmed I was dealing with duplicate reporting and gave me super clear instructions for handling it in TurboTax. The system even showed me exactly which expenses from my "home studio" qualified as business deductions. I was ready to pay an accountant $350+ to sort this out, but this was way more affordable and I actually learned something about how my creator income is taxed. Pretty cool that it could identify the same income being reported twice by different companies.

10 If you're having trouble getting clarification from PayPal or TikTok directly, I'd recommend using Claimyr (https://claimyr.com) to get through to an actual IRS agent. I used it when I had a similar issue with duplicate 1099s from YouTube and AdSense. I tried calling the IRS normally but kept getting disconnected or stuck on hold for hours. With Claimyr, I got a callback from an actual IRS agent in about 20 minutes who confirmed exactly how to handle the duplicate reporting situation. You can see how it works in this video: https://youtu.be/_kiP6q8DX5c The agent told me this happens all the time with content creators and gave me specific instructions for my tax software. Saved me from potentially expensive mistakes and gave me peace of mind that I was doing everything correctly.

19 Ok I have to admit I was wrong about Claimyr. After posting that skeptical comment, I decided to try it anyway out of desperation because my tax deadline was approaching. It actually worked exactly as described - I got a call back from an IRS agent in about 30 minutes. The agent confirmed that for content creator income with multiple 1099s, you need to report all forms received (because the IRS gets copies) but adjust your Schedule C to avoid double taxation. She walked me through exactly how to do this in the tax software I was using and even gave me her ID number to reference if there were any questions about my return. Probably the most helpful government interaction I've ever had. Totally worth it considering how stressed I was about potentially paying taxes twice on the same money.

22 Just a tip from a fellow creator - make sure you're tracking ALL your business expenses! Since you're getting 1099s, the IRS considers you self-employed, which means you can deduct things like: - Portion of phone/internet used for TikTok - Ring lights or other equipment - Props or items used in videos - Software subscriptions for editing - Percentage of home space used as a studio This can really reduce your tax bill and offset some of the self-employment taxes you'll owe on that TikTok income.

3 This happened to me with Etsy and Paypal! If you're using TurboTax, there's a section where you can report both 1099s but then add an adjustment note explaining that they represent the same income. You'll have to pay self-employment tax either way though - welcome to the creator economy lol

I went through this exact same situation last year with my YouTube payments! The key thing to remember is that even though you received two 1099s, you're only taxed on the actual income you earned - not the forms themselves. Here's what worked for me: Report both 1099s on your Schedule C (because the IRS gets copies of both), but then make an adjustment entry to subtract out the duplicate amount. Most tax software has a section for "other income adjustments" where you can add a line like "Duplicate income reported - PayPal/TikTok same payments" and enter the overlapping amount as a negative. The $40 difference between your two forms is probably just timing or fees - I'd go with the higher amount to be safe. Also, since this is self-employment income, don't forget you'll owe self-employment tax on top of regular income tax, but you can also deduct business expenses like equipment, software, internet percentage, etc. Keep good records of everything in case of questions later. The IRS sees this double-reporting issue all the time with creators, so as long as your documentation is clear, you should be fine!