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I would appreciate any help, as I just received this form today
I received a 1099-k from paypal for a high amount. I do not have a business. I am concerned, as this form is correct... but it doesn't reflect what I actually made. I researched online and my understanding is it is more meant for people who use paypal for say selling things (ebay).
Summary - I have used a few gambling sites through out the year. Typically I would deposit money from my bank account or paypal (Ex. $500) into the gambling site and then eventually withdraw the money (Ex. $500 + $250 winnings) into my Paypal or if i lost... then I would add more funds. I did this through out the year, as the funds process quicker when they are deposited from the gambling sites to paypal than sending to a bank account
Anyways... Paypal only counts the deposits you receive vs. withdrawals. So it looks like i made ex. 30k... when in fact I actually lost ex. 5k for the year.
I have all of the summary totals from the gambling sites, which show I lost ex. about 5k for the year.
I am completely confused on how to handle this? Do I report this ex. 30k as income (if so, where) and then somewhere enter what i actually lost to offset (if so, where) the total, etc.?
As If enter in I lost say ex. 5k under gamling losses, but there is no where to enter in the 1099-k of ex. 30k. It seems the only place I can enter in the 1099-k is under self employment, which this doesn't seem correct either not does it reflect any losses
Any help would be appreciated, as this is ruining my night
Note: moving to the investing forum, as no responses on the finance
??? I would defiantly split the amounts between the business and gambling.
Then the losses from gambling would reduce the winning from gambling. Can not deduct a loss from gambling.
Your business probably goes on sch C.
The income on k-1 would go on sch C according to my logic but I do not know what the tax code says.
What is the description of the item on the k-1. The instructions for the k-1 should help. Look up on the IRS site,
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