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@KrisD15 thank you for your detailed response...it helped put me on the right track. however, I am concerned by the following outcome. Also the IRS guidelines (below) add a different twist.

I sold 10 personal items on ebay – 2 for a minor loss

Total 1099-K box 1a = $13,020

For the 2 items sold at a loss, I collected $1,302 ( the net loss amounted to -$20.95)

By following your recommendation of -------------------------------------------

“Choose “I sold some items at a loss or had no gain” if you made a profit on any individual sale

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.”

Following the recommendation above, I entered $1,302 in the box “Enter the total proceeds for items sold at a loss or no gain.”

My tax return shows $1,302.00  on Schedule 1 line 8 on line “aa” c (loss from sale of personal items reported on form 1099-k). Line aa states, “The excludable items from below from Form1099 are included on Schedule 1, line 8z, along with a corresponding negative adjustment to remove from gross income.”

However, Schedule 1, line 8z, is BLANK. As a result is my income being overstated by $1,302?

IRS guidelines offer a different approach ---------------------------

"What to do with Form 1099-K" states the following:

Personal items sold at a loss

A loss on the sale of a personal item can't be deducted from your taxes. But you can zero out the reported gross income so you don't pay taxes on it.

If you sold items at a loss, which means you sold the items for less than you paid, there is no tax liability. You have 2 options to report the loss:

• Report the payment on your tax return at the top of Schedule 1 (Form 1040) PDF. This will ensure you don’t pay taxes you don't owe; or
• Report the loss on Form 8949, Sales and Other Dispositions of Capital Assets, which carries to Schedule D, Capital Gains and Losses.

OPTION 1 above suggests entering the amount from the 1099-K total received that was sold for a loss or no gain at the top of Schedule 1 (not line 😎 as depicted below. 

Why is trubotax not reflecting the personal sales loss proceeds anywhere on Schedule 1?

Option 2 suggests reporting the losses on 8949. It would simpler to enter the total under Option 1 than detail the individual transactions within 8949.

Thank you!