One thing i would add to what was said in this article is that to make sure that you are not putting up any red flags for the IRS, it is really in the Sellers best interest to make sure the Gross Income they report is at least as much as the 1099’s are reporting to the IRS. If you kept very good records and can dispute the information provided on 1099K then you might want to try to get the issuer to revise their information and submit a corrected 1099K to the government. As for reporting at least the same amount as the 1099’s reflect it just makes the computer not want to flag your tax return for an inquiry. You can always write off discounts, refunds as well as any Sales Tax that is reflected in that number which is how I have done my Schedule C each time i have needed to file it with my return.

If you have any other questions after reading this article, you should check with your tax preparer for the answers that best fit your situation.