First, let me say this work around works but you have to follow the directions carefully and understand the implications for audit purposes. This was a real challenge for me in TT Premier 2024, Windows version as there is a bug that prevents access to the 1099-K form using Step-by-Step. You can still go to forms view and search for 1099-K and access it there.
The ultimate goal is to report the eBay income via the 1099-K but then offset it so you have no tax liability. There needs to be a written record in your final tax documents to verify both, that you reported the 1099 income but also the offset. If you simply fill out the 1099-K and click the 1099-K Reconciliation line 2b, both the income and tax liability disappear BUT also the Schedule 1 reported income disappears too. That is bad since it then appears that you forgot to report your 1099-K income, you need to provide an audit trail in your IRS filing forms that show the income and the offset.
The "right" way to show that offset would be to enter it directly on Schedule 1, line 24z but that appears to be impossible in TT 2024. After the better part of 2 hours online with TT support, getting dropped and promised return calls, I reread this post and the light bulb went off. Here is how I (hopefully) solved my reporting and audit trail requiremnent.
1) Go to forms views and search for the 1099-K (I couldn't get it to come up in Step-by-Step)
2) Enter the info from the 1099-K but none in the "1099-K Reconciliation" section. This gets the income reported on Schedule 1, line 8j (where it belongs.)
3) Next, follow the post instructions to report the same income (as a negative number) in the additional income section of Schedule 1, line 8z. This certainly isn't elegant but it provides the IRS with an audit trail and proof that you reported the income and then offset it.
Many thanks to the original author and hopefully this will help others get through this challenge.
