Rakuten shows up on Paypal 1099-K, why?

[Bowman1951]

I had a few hundred dollars show up in between all of my eBay transactions for 2019 on my 1099-K.

All of the information I can find is that cashback rewards programs should not be treated as taxable income (https://turbotax.intuit.com/tax-tips/irs-tax-return/video-are-cash-back-rewards-taxable-income/L1FWHVWGa?fbclid=IwAR0ctSlpx3JU-gpIASqKGs1RiKPu-lRKRN2XOIWKt6JGDoK1BMWNFA9xOS4). So how are you all treating this if you got paid through Paypal with it? I'm not sure how to just ignore it when the IRS now has this information.

Thank you for any helpful "accountant" advice anyone can give. I'm a self preparer so just looking to see how others may look to treat this.

[GoBeavs]

I'm not positive on this, but I don't think PP delineates any between what is "taxable" & "non-taxable". They are just reporting on all moneys you received. It probably even includes when your buddies pay you back when splitting a pizza.

You should focus more on the transactions report in determining your taxable income. Then you can filter out the non-taxable items. Just be sure to save this backup information in case IRS should ever ask why you report a differing amount.

Your total reported income is likely to be much different from PP anyways, as it only tracks your online transactions. Any cash sales wouldn't be included in their figures.

[coltsfan23]

Elect to receive checks for future cashback payments

[SunDevilCards]

I'm not positive on this, but I don't think PP delineates any between what is "taxable" & "non-taxable". They are just reporting on all moneys you received. It probably even includes when your buddies pay you back when splitting a pizza.

You should focus more on the transactions report in determining your taxable income. Then you can filter out the non-taxable items. Just be sure to save this backup information in case IRS should ever ask why you report a differing amount.

Your total reported income is likely to be much different from PP anyways, as it only tracks your online transactions. Any cash sales wouldn't be included in their figures.


One year, I had ebay report a refund from a non delivered item as income. It was a large refund, so it mattered to me. I just did not count it as income on my taxes since it wasn't.

My understanding on rebates is that the IRS considers it a discount and is not taxable.

Just make sure you can prove through documentation whatever you do.

[Bowman1951]

I'm not positive on this, but I don't think PP delineates any between what is "taxable" & "non-taxable". They are just reporting on all moneys you received. It probably even includes when your buddies pay you back when splitting a pizza.

You should focus more on the transactions report in determining your taxable income. Then you can filter out the non-taxable items. Just be sure to save this backup information in case IRS should ever ask why you report a differing amount.

Your total reported income is likely to be much different from PP anyways, as it only tracks your online transactions. Any cash sales wouldn't be included in their figures.Well at the very least, it doesn't include "friends and family". These are all payments they categorized as goods, which pisses me off because even though Rakuten may have deposited to THEM as G&S, it still shouldn't be considered taxable and I'm afraid others are going to end up incorrectly paying taxes on it.

I did look at the transactions report, hence how I knew it was from Rakuten. It wasn't as odd to me that my fantasy sports winnings from Yahoo! were also on there, I get why that can be reported as taxable income.

I guess at this point I just ignore it and continue going through all transactions for the deductions that can occur. But I'm still frustrated in showed up in box 1 of the 1099-K at all.

Elect to receive checks for future cashback paymentsHaha, no. It takes so much longer to get a paper check, I'll take the electronic deposit 9999/10000 on these types of things.

[kerg]

Its a rebate on the 1099K, but you'll still need to account for it on your taxes as such. You can't strip out things like that and not report on your taxes because then your taxes won't match what was on the 1099.