I got a 1099-K from paypal for a side gig. No business name. I filled in the 1099-K info on turbo tax. When I get to the end of my return it tells me all the forms that need to be submitted before I can file. One of them is the schedule C is not ready. How can that happen if the schedule C is part of my return? Do I have to submit a schedule C somewhere else prior to my return? It's not really a business.
The IRS considers an activity engaged for profit to be a business. So you will have to complete Sch C where you can also deduct any expenses related to that income. You will also owe self employment tax if you earned more than $400.
Understand that, but it seems like I can't file my return until I file a schedule C which is part of my return. That's where I'm confused.
No problem. Just wait until the program is updated to include that Schedule. The IRS will not process returns until January 27 anyway.
The program needs to be updated? Like turbo tax? I'm sorry I'm just trying to get clarification, so there's nothing I need to do, I just need to wait for turbo tax needs to update?
Because you received a 1099-K, this is considered a Business and filing a Schedule C is required. The good news is that you can claim Expenses against the income reported on your 1099-K.
Type 'schedule c' in the Search area, then click on 'Jump to schedule c' to make your entries.
Click the link for more detailed info on Reporting Business Income and Expenses.
Depending on what type of items you sold, you may want to look at the 'Cost of Goods Sold' section.
Correct. Many forms are not yet available for filing. Be patient.
I need a Schedule C. How do I get it to use with Turbo Tax
I started filling out the information for the form. I had to quit. I would like to get back where I was. Did I lose everything?