If your Form 1099-K is for casual one-time sales and is not a business or even a hobby with recurring income (this can include income from PayPal, Square Card reader, or other electronic payments) enter the income in TurboTax by going to Misc Income and selecting the last option. Enter the description as income from 1099-K and the amount.
If you r Form 1099-K is for a business then you can enter the income reported on your Form 1099-K (along with any cash or checks you received)as self-employment income on Schedule C.
- Open or continue your return.
- Search for Schedule C and select the Jump to link in the search results.
- Next:
- If you’re entering info about your business for the first time you'll be asked some general questions about your business. After you answer them, you’ll be taken to the Let's enter the income for (your type of business) work screen.
- If you’re returning to Schedule C, select Review or Edit next to your line of work and answer any other screens until you reach the Let's enter the income for (your type of business) work screen.
- Select Other self-employed income.
- On the Tell us about other self-employed income for your (type of business) work screen, enter your 1099-K information.
- Select Continue when finished.
If you are entering income from a 1099-K, remember that it reports the gross amount of the transactions. It doesn't include any adjustments for credits, refunds, discounts, or fees. You’ll have a chance to enter self-employment expenses in another part of your return.
The IRS requires each payment settlement entity to send you a Form 1099-K by January 31 if it has processed at least $20,000 worth of payments and at least 200 transactions for you in the previous year.
But you still could receive 1099-Ks from some PSEs even when the form isn’t required by the IRS. Many PSEs send 1099-Ks to all their vendors, even if they’ve only processed a handful of transactions and fall well short of the $20,000 threshold.
Form 1099-K Decoded for the Self-Employed - TurboTax Tax ...
