Get your taxes done using TurboTax

It is possible to report the IRS form 1099-K income as incorrect by entering the 1099-K as other income and selecting This amount in box 1a is too high or includes some personal transactions. 

In TurboTax Online, you would report other income by following these directions.

• Down the left side of the screen, click on Tax Home.
• Click on the down arrow to the right of Review.
• Click on the blue band labeled Review.
• Down the left side of the screen, click Federal.
• Down the left side of the screen, click Wages & Income.
• Scroll down to Other Common Income click on the dropdown menu.
• Under Your income and expenses, click the 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 Other income.  Click Continue.
• At the screen Let’s get the info from your 1099-K, enter the information.     
• Note the box "This amount in box 1a is too high or includes some personal transactions."
• Click Continue.
• At the screen Your Other 1099-K income, you enter further information for the Other income.  Click Continue.
• At the screen Your 1099-K summary, notice that the income relates to Other income.  Click Done.

The entry will be reported:

• on line 8z of Schedule 1 of the Federal 1040 tax return, and 
• on line 8 of the Federal 1040 tax return.

At the top of Schedule 1, note the amount reported in error or for personal items sold at a loss.

The IRS form 1099-K for $65,000 represents distributions from gambling winnings.  You are reporting $65,000 as gambling winnings and you are explaining that you did not receive an IRS form W-2G.

You are reporting the full $65,000 distribution which you should be able to explain should the IRS question your return.  To document your winnings and losses, the IRS requires that you maintain a log of your winnings and losses as a prerequisite to deducting losses from your winnings. Your winnings include each win during the year.

See TurboTax Help.