Get your taxes done using TurboTax
When you report income from an IRS form 1099-K, TurboTax gives you several options as you see here.
Hobby income allows you to report the income but current tax law gives you no opportunity to report the expense against the hobby income.
Personal item sales will allow you to report the income and expense on IRS form 8949 / Schedule D Capital Gains and Losses.
A home office deduction may be allowed against self-employment income.
To report Hobby income, follow these directions.
- Down the left side of the screen, click Federal.
- Down the left side of the screen, click Wages & Income.
- Click Show more to the right of Other Common Income.
- Under Your income and expenses, click the Edit/Add button to the right of Form 1099-K.
- At the screen Did you get a 1099-K? click Yes.
- At the screen How would you like to enter your 1099-K? click Type it in myself. Click Continue.
- At the screen Choose which type of income your 1099-K is for, select the button for Hobby income. Click Continue.
- At the screen Let’s get the info from your 1099-K, enter the information. Click Continue.
- At the screen Your 1099-K summary, notice that the income relates to ‘Hobby’. Click Done.
The entry will be reported:
- on line 8j of Schedule 1 of the Federal 1040 tax return, and
- on line 8 of the Federal 1040 tax return.
Hobby income expense is not allowed to be reported.
To report Personal item sales, follow these directions.
- Down the left side of the screen, click Federal.
- Down the left side of the screen, click Wages & Income.
- Click Show more to the right of Other Common Income.
- Under Your income and expenses, click the Edit/Add button to the right of Form 1099-K.
- At the screen Did you get a 1099-K? click Yes.
- At the screen How would you like to enter your 1099-K? click Type it in myself. Click Continue.
- At the screen Choose which type of income your 1099-K is 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, you are told that further information will need to be entered. Learn More provides detailed information for the next steps. Click Continue.
- At the screen Your 1099-K summary, notice that the income relates to ‘Sale of Personal Items’. Click Done.
- Under Your income and expenses, click the Edit/Add button to the right of Investments and Savings (1099-B, 1099-K….)
- At this screen, you will be asked to Review the Personal item sales (1099-K).
At the screen Now, enter one sale…., answer questions about the personal item sale. Click Continue.
The entry will be reported:
- on Schedule D of the Federal 1040 tax return, and
- on line 7 of the Federal 1040 tax return.
Capital loss for a personal item sale reports $0 capital gain on line 7 of the Federal 1040 tax return.
