Yes, here are the steps:
If you sell items online as a business, enter on Schedule C
If you sell personal items online similar to a garage sale enter following these steps:
In TurboTax enter the 1099-K under:
Income
Other Common Income
Income from Form 1099-K START
On the “Did you get a 1099-K?” screen, select “Yes”
On the “Which type of income is your 1099-K for?” screen, select “Personal item sales” CONTINUE
Enter the 1099-K as it was reported
Continue
On the next “Personal Item Sales” screen, make the correct selection.
Choose “I sold some items at a loss or had no gain” if you made a profit on any individual sale
Enter the amount of the 1099-K that represents the cash you got for selling items at cost or under.
So, if the 1099-K reports $1,000 and the only item you sold at a profit was an item that sold for $50, you would enter 950.
$950.00 on that 1099-K does not need to be addressed.
Also, remember that this is NOT saying you MADE $50, only that someone paid $50. The profit would be less because you need to subtract what you paid to buy it.
CONTINUE
Finish the interview and select done on the “Your 1099-K summary” screen,
YOU ARE NOT DONE if you made the first choice that only SOME items sold at a loss,
that would mean that at least one item sold at a gain, for a profit.
Now you need to report the sale, go to
Income
Investment Income
Stocks, Cryptocurrency, Mutual Funds, Bonds, Other click UPDATE
The next screen should show “Personal items sales (1099-K)”
Click REVIEW to open
The next screen has an input screen for the Personal items you sold at a
profit/gain.
Enter one sale that was a gain, at a time.
Report when purchased, when sold, how much you paid to buy it and how much they paid to buy it from you
The next screen asks for selling fees, but those are USUALLY deducted before they pay you, so would not be included on Form 1099-K
If they were not deducted previously, enter here
Once done, you should see the amount of proceeds you needed to address ($50) and the profit you made from that (those) sales.
The profit is Capital Gain listed on your 1040 line 7
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