Why is turbotax having me list every personal item I sold (at a loss) rather than allowing me to report it as 1 lump sum on schedule 1 form 1040? (for 1099K)

[Jennifer1974]

I received a 1099K. I have selected "All items were sold at a loss or had no gain" According to the IRS website there are 2 ways to report this. Schedule 1 form 1040, 1 lump amount, OR form 8949, schedule D, where you list every item. Turbotax is having me do it that way and list every item, (under the investments and savings tab) it's taking an eternity. How do I do it the other way?

[JamesG1]

When posting the IRS form 1099-K

• At the screen Which type of income is your 1099-K for, select the button for Personal item sales.  Click Continue.
• At the screen Let's get the info from your 1099-K, enter the information.  Click Continue.
• At the screen Personal Item Sales, 
  • select either I sold some items at a loss or had not gain, or
  • select All items were sold at a loss or had no gain.

[Jennifer1974]

When I select “sold personal items at a loss “ there is a note that says “we’ll gather more info later” ( something like that). If you click on the blue  link to get an explanation, the window pops up to the right and tells you that you must list all items under the 1099B investments stocks etc tab.  If you go to that tab there is a “personal items” tab under investments to which you must list them all. Dates sold, how much you paid, what you sold it for, etc.  Is that actually  necessary? 

[JamesG1]

You may select this option.

Enter the IRS form 1099-K and select Personal item sales.

At the screen Personal Item Sales, select All items were sold at a loss or had not gain.

In TurboTax Desktop Home & Business, the amount is reported on Schedule 1 Additional Income and Adjustments to Income.

[Jennifer1974]

I appreciate the answers but no one is reading the full question. TurboTax makes you take steps after that. Next to “ personal items” there is a blue link that says “ learn more”. There it gives further instructions on listing everything you sold in a separate area of TurboTax 

[jbpatterson]

This isn’t working as you described. The software is still throwing an error on “review” before filing. Please help!

[JamesG1]

I believe that you are saying the the IRS form 1099-K box 1a entry equals the amount that was identified as All items were sold at a loss or had no gain.

If this is the case, there are no transactions to report on an IRS form 1099-B under Investment Income.

If the IRS form 1099-K box 1a entry equals the amount that was identified as All items were sold at a loss or had no gain, are you able to Review or Smart Check and return no errors?

@Jennifer1974 

[Jennifer1974]

It keeps saying 1099K needs review. It doesn’t point out what the actual error is but I’m assuming it’s because I didn’t do the itemized list of what I sold. I can just keep hitting continue without correcting whatever is wrong to get through it 

[DaveF1006]

It depends. The IRS in its publication  says you can report the 1099K information in one of two ways.  I'd recommend the first method. 

• Report the payment on your tax return at the top of Schedule 1 (Form 1040) PDF. This will ensure you don’t pay taxes you don't owe; or
• Report the loss on Form 8949, Sales and Other Dispositions of Capital Assets, which carries to Schedule D, Capital Gains and Losses.

Here is how to report the first method in TurboTax.

1. Report the 1099K under the other common income section of the return.
2. When it asks you for the type of income, be sure to enter Personal Use Items.
3. Then the next screen will ask you for information on the form.
4. Next screen you can check that the items were sold at a loss and had no gain. The income becomes nontaxable at this point.

As an FYI, losses on personal items can't be claimed but can be zeroed out to exclude the gross income reported on the return. Also, if the entry is zeroed out, it won't appear on Schedule 1 but there will be a 1099K worksheet included in your return that reports the details on the 1099K.

[Jennifer1974]

Thanks Dave. I’m TRYING to do it the way you suggested but TurboTax is forcing me to do it the other way.  I don’t understand why.  When you select personal items there is a “ learn more” link. Click that link and it says “ later you’ll list the items that you sold…”  which I started to do but it got so time consuming. 

If you don’t do it you keep getting “ 1099K needs review” 

[jl436695]

Double check amounts on Forms 1099-k  and 1099-d

Review investments and income section

Check where numbers are input.

[rdbstl]

I've been battling this for the last few hours. Couldn't get the 1099B to appear for a while, but finally did and every single transaction showed "needs review" for no reason. Once again, I've deleted those transactions and am back to battling the 1099K mystery.

This is a joke. It really is.

[JamesG1]

In TurboTax Premier Online, access the IRS form 1099-B by following these steps:

• Down the left side of the screen, click Federal.
• Down the left side of the screen, click Wages & Income.
• Click the down arrow to the right of Investments and Savings.
• Click to the right of Stocks, Cryptocurrency, Mutual Funds, Bonds, Other (1099-B).

The posting of IRS form 1099-K for personal item sales is a two-step process.  

• First, you post the IRS form 1099-K amount of box 1a.  
• Second, you post the IRS form 1099-B Proceeds From Broker and Barter Exchange Transactions to report the sales proceeds and the cost of sales.

Make sure that the amount reported on the IRS form 1099-K box 1a equals the Proceeds reported for the multiple entries of IRS form 1099-B.

If you report I sold some items at a loss or no gain at the screen Personal Item Sales, then the computation becomes:

The amount reported on the IRS form 1099-K box 1a less the amount you reported at I sold some items at a loss or no gain at the screen Personal Item Sales equals the Proceeds reported for the multiple entries of IRS form 1099-B.

If you are reporting dollars and cents down to the last penny, first round all entries to the nearest dollar.  Then make sure that the numbers balance before you start entering information into the software.

@rdbstl 

[Ricky S]

Even though the 1099-K inputted as personal use items - all sold at a loss - had an error that needed to be resolved.  I skipped that and got to the point where I could print and submit my return.  This put the entry on the first line of Schedule 1 where it belonged.  Going this method rather than listing it as 1099B and doing the 8949 capital gains/loss multiple entry seems logical.  I sold 40 items on ebay - all small little yard sale type stuff.  It is not a business or a hobby of any kind!   Intuit needs to resolve the issue with 'item needs review' with no way to fix it as a 1099-K personal use items.

[ejbelair]

This makes sense and SHOULD work, but does not. Every time I enter my 1099-K, and select Personal Items and All Items were sold at a loss or no gain, I get a NEEDS REVIEW when I get to Federal Review and the "Personal Items" doesn't show on the 1099-K listing. This is a bug and needs to be fixed.