I received a 1099 from square but I'm not a business.

[merryrfefer5fer]

I received a 1099 from square, but I'm not a business, I use square as an individual, why & how can this be fixed ?

[Donnie-M]

@merryrfefer5fer You were correct to receive a 1099-k from square that shows what you processed in credit cards.  All businesses and individuals will receive one of these if they processed over $600 in credit cards to use when filing your income tax return.  

While I know this may come as unexpected, but don't worry over it too much.  If you are a non-profit or just used it for some household type goods, whoever does your taxes will use the form appropriately.  The IRS wants to make sure that if someone is running a business even as an individual that all income is reported appropriately.  If it was for non-profit purposes you should have receipts or other documentation to support why this isn't income.

The best bet is to consult with a tax attorney or tax professional.  If you have a hobby, sell personal stuff at a garage sale at a loss, etc..then that would be non-taxable income, but it has to be reported.

"If you receive an Form 1099-K for income that is not taxable income, the IRS provides information on how to report this amount. You can report the amount in Part 1, Line 8z, Other Income of Schedule 1, Addition Income and Adjustments to Income and also report the the non-taxable amount in Part 2, Line 24z, Other Adjustments of the same form. This process adds an amount to your income and then subtracts an amount from your income while at the same time accounting for the amount shown on the 1099-K on your tax return so that it matches the IRS records."

[merryrfefer5fer]

Thanks Donnie for the information, the problem is, this was No income at all of any type, all the transactions came from my son, I pay his bills & he pays me back, so reporting it as an income, even if I can deducted would be a false statement. Does the rules still applies regardless? Thanks in advance.

[Donnie-M]

@merryrfefer5fer I think there are deductions for families gifts etc and you can show where you paid those bills so there is a form to declare it not income.  The definition of income is different for the irs than it is for you and me...all money that comes in (in it comes) they want to see on one side and then what you used it for on the other.  In accounting it is offsetting entries.  You may want to look at the cashapp to use for this in the future as it might be cheaper and better for you.

[merryrfefer5fer]

That makes sense, and yes since we discovered cashapp we have been using it since, I realize square is more tailored to businesses or entities receiving payments.   I will stop stressing about this now, thanks for all the help.