How do I enter a 1099-K?
1099-Ks can be used to report a few different types of income, so how you enter them depends on what income they're reporting.
See your situation below for instructions on how to enter your 1099-K in TurboTax.
How do I enter a 1099-K for personal item sales?
Form 1099-K tracks income you made from selling goods or providing services via payment apps and online marketplaces. Examples include PayPal, Venmo, Square, Etsy, Uber, and eBay.
You should receive a 1099-K if you made more than $20,000 and the number of transactions exceeds 200 on one of these platforms.
Even if you don't receive a 1099-K, or you make less than $20,000, you still need to report all taxable income to the IRS.
Examples of personal items include:
Baseball cards
Concert or movie tickets
Used computers or electronics
Cars
Used clothes
Follow these steps to enter your 1099-K using TurboTax Premium:
TurboTax Online
Go to 1099-K under Income in the Federal section.
Follow the onscreen instructions to enter your 1099-K.
TurboTax Desktop
Open or continue your return.
Go to Federal Taxes.
Go to Wages & Income.
Under 1099-MISC and Other Common Income, select Start or Update next to Income from Form 1099-K.
Follow the onscreen instructions to enter your 1099-K.
Each gain or loss from a personal item sale needs to be reported separately. If you had a loss on the sale of any personal item, it can't cancel out any gain on the sale of another personal item.
Example: Tyrone bought a couch for $400 and sold it two years later for $200. Since he sold it for less than his original purchase price, the loss can't offset other income, and the sale would be reported as $0 on his tax return. However, when Tyrone bought a table for $200 and sold it for $300 two years later, he had to report the $100 gain as taxable income.
How do I enter a 1099-K for self-employment income?
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.
Here's how to do it, using TurboTax Online Premium:
Open or continue your return.
Go to Schedule C.
Answer the questions about your business and its expenses until you get to the Enter details screen.
If you’re returning to Schedule C, select Review or Edit next to your work and then answer the questions about your business.
Select Add income for this work.
On the Let's enter the income for your work screen, select Form 1099-K and Continue.
Enter your 1099-K info.
How do I enter a 1099-K for hobby income?
Hobby income is money made incidentally (you don’t depend on the income), doing what you love.
The IRS doesn't let you deduct hobby expenses from hobby income because you’re not considered self-employed.
Follow these steps to enter your hobby income in TurboTax.
Open or continue your return.
Navigate to the 1099-K section:
TurboTax Online/Mobile: Go to 1099-K.
TurboTax Desktop: Search for and select 1099-k.
Select Yes on the Did you get a 1099-K? screen.
When asked Which type of income is your 1099-K for?, choose Hobby income and Continue to answer the rest of the questions.
