How do I enter something on Schedule I, Line 24z?

[tagteam]

The IRS instructions have been revised.

See Revised 2022 Instructions for Form 1040 (and 1040-SR) | Internal Revenue Service (irs.gov)

[JohnB5677]

1099-K Adjustment

As indicated by other answers, there has been an IRS update to the instructions for entering this information.  This revision allows for this to be reported on Form 8949, which is the way that TurboTax handles these transactions. 

After you have entered your 1099-K Box 1a gross amount and other information, click continue and then done.  Then, follow these directions to account for your loss on the sale of personal items:

1. Scroll to Investment Topics and then to Stocks, Cryptocurrency, Mutual Funds, Bonds, Other (1099-B) and click Start (or Revisit.)
2. On the Income & Expenses screen find Investments and Savings (1099-B,1099-INT, 1099-DIC, 1099-K, Crypto) and click on Edit/Add
3. Next, Select Edit or Review and enter the information from the first personal sale item
   • For What type of investment did you sell?  Be sure to select Personal Items  
   • Enter the amount you originally paid in Cost or other basis amount.
4. Click continue when you're finished to proceed to the review screen.
5. Select Add another sale to add additional items.  (Summaries from the sale of lots are allowed, but be sure to keep good records and make them easily accessible for the next three years.)

[Edited: 2/3/23 3:55 PM PST]

[ssdc]

Thanks for the revised instructions. Based on that, I'm now entering my 1099-K info as "Personal Item Sales", and then in the investment sales section I aggregate the sales into a single entry categorized as Personal Property with proceeds that  match the 1099-K and a higher cost basis. I'm entering the description as "Form 1099-K Personal Items Sold at a Loss". 

This generates a proceeds entry on Form 8949 that matches the 1099-K ; this 8949 entry gets flagged with "L", which results in a Gain/Loss (column h) of 0. This then carries through to the Schedule D.

I'm probably going to stick with this unless Intuit comes up with a way to make the 1099-K reconciliation/adjustment show up on Schedule 1, lines  8z and 24z. But now at least I have a return that shows in 2 places figures matching the 1099-K income.

[ssdc1]

None of this is working in TurboTax appropriately. The IRS instructions explicitly state to use line 24z for the offset. TurboTax is not allowing access to that field, and the stated TurboTax fix of entering into the investment area is creating a loss that is affecting my refund even though it shouldn't be.

Is Intuit planning to fix this, or should I just file a return with TurboTax that is incorrect and then sue them when the IRS audits me?

[tagteam]

It will not be fixed (in terms of Line 24z) this tax season.

[shygamer]

I'm using H&R Block Deluxe software and see no way to enter a value on line 24z either. I spent several hours with their customer service, and it was useless. They told me I would have to override the form but then I could not efile. I see no online community for H&R Block to post this question. This is really frustrating.

[DawnC]

This is a TurboTax forum.   If you are using Home and Business desktop software, you can't override Line 24z.   You can add a negative entry on Line 8z, which will do the same thing as putting an entry on Line 24z, but that field (24z) is not editable in TurboTax Online or desktop.    @shygamer 

If you got a 1099-K for something other than self-employment, please see this link.   

[modester]

What I did was  Schd 1 entered the gross amount and subtracted the loss  in Other income line 8.  But I would much rather report this per the IRS recommendations and TurboTax should follow the IRS recommendations  which is reporting  the gross amount to Other Income Line 8 but deducting in Adjustments to other income line 24Z. So yes, TurboTax should allow an entry in line 24z . If the IRS didnt want this line utilized they wouldn't have provided it - why Turbo Tax is going against the IRS recommendation is concerning.  I dont agree with TurboTax on a number of levels here and seems to me is requiring the user to be more tax savvy than is necessary.  Reference : question #6 on https://www.irs.gov/pub/taxpros/fs-2022-41.pdf 

[tagteam]

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@modester wrote:

I dont agree with TurboTax on a number of levels here and seems to me is requiring the user to be more tax savvy than is necessary.  

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They will probably implement Line 24z but not until next tax season (the 2023 products).

[modester]

Adding to my previous comment - This "work around" seems to work ok for the Federal - but did not flow through to the state (NJ in my case) - so income is overstated on the NJ State income - unless I can override the state? Will have to check. This is so annoying and really is an error on TurboTax side. 

[BigDanM]

I have the same issue with the state of Massachusetts. The positive flows through to the state, but the negative is floored at 0 so only the positive is shown overstating my income. As others have stated, this should flow through Sch 1, part 2 line 24z not be shown as a negative in line 8z.

Hope this is fixed by next year when nationwide 1099-ks will be sent to anyone with $600+ in transactions.

[tagteam]

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@BigDanM wrote:

Hope this is fixed by next year when nationwide 1099-ks will be sent to anyone with $600+ in transactions.

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I cannot be certain, but I believe that is the plan.

[jerry2ab]

You can not access this line Sch 1 part 2 line 24 z in this program . You can only print the the forms and fill in manually and mail per post office . This problem exists longer . Why dose Turbo Tax not remedy this problem ? An option is to find a Tax program that lets you access this line. Using Sch 1 part 1 line 8 may not be an option and isn´t an option when filing Social Security payments . Turbo Tax please fix this problem . Thanks

[tagteam]

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@jerry2ab wrote:

]Turbo Tax please fix this problem.

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The developers are working on this issue.

[reaboys]

Almost 2 months later. Still no fix. Intuit is trying its best? Don't think so. Just raking in money for a very crummy product. But my turbotax program says I have less than 10% chance of being audited! Bleh