Received Two 1099-K Forms for the Same Income - How to Handle This?

This is actually more common than you might think with the new $600 1099-K reporting threshold. Here's what you need to understand: both companies are required to issue 1099-Ks when they process payments above the threshold, even if it's for the same money moving through multiple platforms. When you file your taxes, you should report the total gross income on Schedule C (that's the larger amount before WorkGig took their fees), then deduct the platform fees as a business expense on the same form. The important thing is making sure you don't double-count the income. I recommend keeping detailed records showing that both 1099-Ks represent the same income stream. Create a simple spreadsheet that reconciles the two forms and shows they're reporting the same transactions. If you're using tax software, you'll enter both 1099-Ks, but then make adjustments so the net income is correct.

I had this exact same headache last year with TaskRabbit and Venmo! After hours of frustration, I finally used taxr.ai (https://taxr.ai) to help sort it out. It specifically has a feature for analyzing duplicate income reporting on 1099s. You upload both forms and it creates this really clear breakdown showing the overlap between the two statements. The best part was it generated a detailed explanation document that I could attach to my tax return that showed exactly how the numbers reconciled. The tool also helped me identify which fees I could legitimately deduct as business expenses, which saved me quite a bit. Totally changed my approach to dealing with these platform payment nightmares.

Alright I need to apologize for calling that taxr.ai thing sketchy. I was in the same situation with duplicate 1099s from Fiverr and PayPal and was getting desperate after my accountant said I'd need to pay someone to create special documentation. I tried the site and it actually worked perfectly! It analyzed both forms, showed exactly where the overlap was, and created this super professional PDF explaining everything. My accountant was impressed and said it was exactly what we needed. It even flagged some deductions I was missing related to platform fees. Just wanted to come back and say thanks for recommending it. Saved me a ton of stress and probably money too.

This happened to me last year. I spent WEEKS trying to get someone at the IRS to explain how to handle it. Called like 15 times but could never get through. Finally used Claimyr (https://claimyr.com) to get a callback from the IRS and wow, game changer! They have this video showing how it works: https://youtu.be/_kiP6q8DX5c The IRS agent I spoke with confirmed exactly what to do: report both 1099-Ks on your return, but include a statement explaining they represent the same income. She walked me through exactly how to document everything to avoid getting flagged for an audit. The peace of mind from speaking directly with the IRS was worth every penny instead of relying on guesswork.

I need to eat crow here. After dismissing that Claimyr service, I got desperate enough to try it yesterday. I'd been trying to reach the IRS for THREE WEEKS about my double 1099-K situation. Within 90 minutes of using Claimyr, I got a call from an actual IRS representative who explained exactly how to handle my situation. They confirmed I should include both 1099-Ks but attach a detailed reconciliation statement showing they're for the same income. They even emailed me a template to use! Can't believe I wasted so much time trying to call them directly. If anyone else is struggling to get through to the IRS about this issue, I highly recommend using their service.

One thing nobody mentioned yet - make sure your record-keeping is REALLY detailed this year. Because of the new lower 1099-K threshold, the IRS is focusing more attention on gig workers with multiple 1099s. I list every single transaction with dates, platform used, gross amount, fees paid, and net received. This way if I ever get audited, I can clearly show that Platform A and Platform B are reporting the same transactions. Also, don't forget you can deduct other business expenses beyond just the platform fees - mileage, supplies, portion of cell phone bill, etc. Might help offset some of the tax impact.

Slightly different situation but related - I got a 1099-K from PayPal for money friends sent me to split bills and rent. Completely personal transfers, not business income! Anyone know how to handle this?

I went through this exact nightmare last year with Uber and PayPal! The duplicate 1099-K situation is incredibly frustrating, especially when each company just points fingers at the other. Here's what I learned after finally getting it sorted out: You absolutely need to report both 1099-Ks on your return since the IRS gets copies of both. But the key is making sure your actual taxable income is correct on Schedule C. What worked for me was creating a simple reconciliation document that showed: - Total gross income from gigs (the real amount before any fees) - Platform fees paid to WorkGig as business expenses - How both 1099-Ks relate to the same income stream I attached this as a statement with my return explaining the situation. No issues from the IRS, and my CPA said this approach was exactly right. The most important thing is keeping detailed records showing the money flow - from the gigs through WorkGig to CashApp to your bank account. This proves it's the same money being reported twice, not separate income streams. Don't stress too much - this is becoming super common with the new reporting thresholds, and the IRS understands the situation as long as you document it properly.