@jsspbusiness wrote:
I'm not questioning the process, but it seems strange that numbers are being introduced with no real explanation of what had taken place.
So, if your daughter gets a 1099-K (which seems to be the case) but the income is not hers, it was just passed through her name, there are two official procedures to report it, and one semi-official procedure. All three methods deal with the problem that, if your daughter got a 1099-K and does not report it somehow, the IRS will see that is additional income and send a bill for taxes. You have to report it, and deal with it, in "writing" on the tax return, to show why it was reported as income but is not in fact income.
1. If filing by mail, leave the 1099 off the tax return. Attach a copy of the 1099-K and a written explanation of why it is not income to the rest of the return and mail it in.
2. If e-filing, report the income as miscellaneous other income on line 8z of schedule 1. Include a brief explanation (about 1 sentence). Then, report the same amount as an offset on line 24z of schedule 1, with a brief explanation. You can access line 24z using Forms Mode in Turbotax Desktop (the program installed on your own Mac or PC).
3. Because line 24z of schedule 1 is not accessible when using Turbotax online, the semi-official workaround is to enter the income as miscellaneous other income on line 8z, then enter a duplicate item of income with a minus sign, which will also go on line 8z and cancel out the income. It's not technically correct, but seems to be an acceptable workaround.
