One thousand dollars or one thousand things?
If you sold one thousand ITEMS, the IRS might think you are running a business.
At any rate, you enter the 1099-K under
- Income
- Other Common Income
- Income from Form 1099-K
Select "Personal item sales" if that is what this is reporting
Continue and enter the 1099-K as it was reported
This next part is important-
If this is simply selling personal items, you CANNOT claim any loss for any items you sold for less than what you paid for them HOWEVER you must claim the gain on ANY item you sold. The loss on some items CANNOT be used to offset the gain on a different item.
If you had NO gain on ANY sales, select "All items were sold at a loss or had no gain"
Continue and you are done with that 1099-K.
If ANY item sold at a gain, select "I sold some items at a loss or had no gain"
On the next screen enter the amount EXCLUDED from any gains. So if the 1099-K reports $500, and $400 of that was for things you sold at a loss (or for the same as what you paid) enter 400.
Continue Select Done, however now go to
Investment Income
Stocks, Mutual Funds, Bonds
Click Start or update
The 1099-K you just entered will be listed there
Click Edit for that merchant
Continue through "Confirm your financial institution info"
Click ADD for "Here's all the sales reported ..."
Select "I'll enter one sale at a time" OR "I'll enter a summary for each sales category" depending on your situation.
Enter the pertinent information regarding the sales that resulted in a profit, including what you paid (Basis) and what you sold it for (Proceeds)
If you owned it for one year or less, it is short-term
If you owned it for more than a year, it's Long-term
Repeat for each 1099-K you recieved.
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