1099-K How to report this?

Another thing to consider is that Apple lags its payments 45 days (5 weeks, typically). I received my Jan 2015 on March 5. I received Nov/Dec 2014 payment in Jan/Feb 2015. There's no way to reconcile this form with bank deposits which matters if you're using the cash accounting method.

The problem is that is must be reconciled. At minimum, the IRS will send you a bill for the difference. Worst case scenario, of course, is a full audit.

I've read that what people do is to report the full 1099-K amount (not that you have a choice) and then deduct the difference as "commission and fees".

I'd like to hear from other individuals who have also received a 1099-K and how they handled this on their taxes.

I recommend what was said here: "report the full 1099-K amount as income and then deduct the difference as "commission and fees" expense. The expense would be less than 30% since Apple doesn't report total earnings. The net is what you recieved in your bank account.

The original question as to whether you "guess" at the the full amount and add that as "unreported" income, I wouldn't bother. This would only seem to complicate things and would seem to make an audit more likely as income and expenses are both higher. You don't actually have any expenses from your bank account to back up either approach. If an audit does happen, I doubt it would matter which way you did it as both ways would bring you to the same end result.

I received two 1099-Ks from Apple this year, one from Apple Inc in Cupertino and another from Apple Operations International in Ireland. I'm assuming the first is for US sales and the other is for all other countries, although it could be that there are more than two regions and I only had enough sales in these two regions to generate the forms. Anyway, I don't think the number of forms matters -- just add them together.

Like you, the amounts on my forms only roughly correspond to my actual income from Apple, so I included the full amount in my income and included the difference between the actual deposits and the 1099-K amounts in Commissions and Fees.

Since I also received 1099-Ks from four other payment networks, and I have other income and other commissions and fees, the amounts reported on my Schedule C has no obvious relation to the amounts on these forms, so I documented my calculations to refer back to later in case of an audit.

Like the others here we received two 1099-Ks from Apple, one from Apple Inc in Cupertino and another from Apple Operations International in Ireland. One is for US sales and the other is for all other countries. I simply add them both together.

The amounts on our 1099-K do not correspond to the deposits. The 1099-K reflects every single month an amount Jan-Dec. However, deposits into our bank account are Jan, March, June, and Sept, all have 1 Deposit. Feb, May, Aug, and Nov have 0 Deposits. April, Jul, Oct, and Dec all have two deposits. So the bank deposits do not correspond to the reported income for the month on the 1099K. As someone mentioned, Apple pays out approximately 45 days in arrears. But in every case, the amount shown on the 1099-K is more than the deposits. And the months where it is double deposits proceed a month with no deposit.

What I do is match the month with the deposit and include the full amount as our income and included the difference between the actual deposits and the 1099-K amounts as Apple Fees. Now the problem with this is trying to decipher if your percentages for fees is right. Mine do not, they vary from deposit to deposit. One month fees are 42% one month they are 12% or 15%. When I take the total amount for the year it equates to 29.99% for Apple Fees, which does not make sense as many of my users have had the app subscription for more than a year.

I just do not understand why Apple has to make this so damn convoluted. Accounting is Accounting. We have asked for clarification and cannot get a response other than to pound sand.

In the end, I do the same with taking the 1099-K total and then expense the difference. It is annoying it has to be a such a black box.

Why can't the monthly report that comes with the payout also include that extra total amount. So then you have a ***** amount minus fees and then equals your check/paid amount. If they can figure out the paid amount, they must have the higher amount as well that winds up in the 1099-K.

This method winds up leaving out whatever international amounts when you don't earn enough for the 1099. So you get paid the money but have no documentation on the true fees.

This helps out a lot. I've been trying to get an answer from Apple Finance but haven't got a straight answer. I don't get why the lack of transparency.

Maybe there's a secret place Apple keeps their 1099's on App Store Connect or elsewhere? I looked under taxes on App Store Connect and only saw my old W-9.

I'm a U.S. taxpayer, and made $39,000 last year and got no paperwork, nor is there any option I see on App Store Connect to download one. I had to calculate my income from my bank deposits which isn't necessarily what Apple reports to the IRS. So, from what I can tell, I'm at risk for IRS scrutiny because Apple won't do their job and send me a 1099 like they are obligated to. Urrrr!