Uber Driver. Matching. Where do you report?

[Pacun]

I guess amazon, e-bay and Uber will issue 1099K to the earner and to the IRS. For matching purposes how are you reporting this income? Are you using the 1099-misc form when preparing their taxes, which is sent to Sch C where you enter expenses?

 

[Catherine]

I don't have an Uber driver but I have a Turo renter.  I used Schedule C for income and expenses.  Yes, client got a 1099-MISC equivalent from Turo.  (Not the form itself, but all the info on paper with a "we are reporting this to the IRS and treat this like a 1099.")

[Jack from Ohio]

As long as all income is claimed, there will never be an issue with 1099-K.  Total sales will always exceed the amount on 1099-K.  That is what the IRS system will check.  If total sales are not greater than the amount on the 1099-K, there will be a CP2000.

This includes tips...

[Terry D EA]

I do the same as Jack stated. There is not an input for information from the 1099K. I would not just randomly decide to use the 1099MISC instead. My software allows detail of where the income is from. I use the gross proceeds from cash/check sales on Sch C line 1 and the line for other income to show the amounts from the 1099K. Prints out a nice statement that transmits with the return.

[joanmcq]

But it's NOT other income, it's just the amount of sales that were paid by credit card. Why not then just report on the worksheet behind line 1:  one for cash/check sales and one for reported on 1099-K if you want a statement?  

One big big issue with 1099-k for people who sell goods subject to sales tax when all of the transactions are by credit card, like internet sales, the amount on line 1 will be less than the amount on the 1099-k.