What are personal transactions on a 1099-K?
Most personal transactions shouldn't show up on a 1099-K. They could if your third party payment network can't distinguish between business and personal transactions or if you mistakenly used your business payment account for a personal transaction.
Personal transactions that could show up on a 1099-K include non-business transactions like gifts or splitting a dinner bill with friends. For example, if you used Venmo to split a restaurant bill with friends and accidentally used your Venmo business account, that will show up on a 1099-K. Most personal transactions aren't taxable and shouldn't be reported on your 1099-K. You only need to report a personal transaction on your tax return if you sold personal property at a gain (for more than you bought it for).
The company that issued your 1099-K should differentiate between business and personal amounts. However, if they don't, you'll need to request an updated 1099-K from them so you can report only business transactions on your return.
If the issuer of your 1099-K will not correct the form, you can report this in your account by going to Menu Path: Income > Business / Rental Income > 1099-K Income. At the bottom of that page, answer Yes to the question asking, "Did you receive a 1099-K that's incorrect?" You can enter the amount that was incorrectly reported on your 1099-K on the following screens.
Personal transactions that could show up on a 1099-K include non-business transactions like gifts or splitting a dinner bill with friends. For example, if you used Venmo to split a restaurant bill with friends and accidentally used your Venmo business account, that will show up on a 1099-K. Most personal transactions aren't taxable and shouldn't be reported on your 1099-K. You only need to report a personal transaction on your tax return if you sold personal property at a gain (for more than you bought it for).
The company that issued your 1099-K should differentiate between business and personal amounts. However, if they don't, you'll need to request an updated 1099-K from them so you can report only business transactions on your return.
If the issuer of your 1099-K will not correct the form, you can report this in your account by going to Menu Path: Income > Business / Rental Income > 1099-K Income. At the bottom of that page, answer Yes to the question asking, "Did you receive a 1099-K that's incorrect?" You can enter the amount that was incorrectly reported on your 1099-K on the following screens.
