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Get your taxes done using TurboTax
The loss is not entered on Schedule 1 because the income is adjusted BEFORE the entries are made on Schedule 1.
If your 1099-K reports 13,020 and it is reporting personal Item Sales, the program will not enter 13,020 as income.
First it will subtract what doesn't matter, in your case 1,302 from the amount listed on the 1099-K.
In your case, that leaves 11,718 that you received for selling items that resulted in a gain for you.
This is STILL not listed as income, because this is just money that was sent to you, but you had to pay for the items that you sold, so only the profit is considered income.
Second, you list the items that sold (and all the sales proceeds plus selling fees added up the the 11,718 you received) and you enter what you paid for them and any selling fees to figure out your net profit.
FINALLY that net profit is what gets listed as income.
My program does list the excess on the Schedule 1, although it is not computed for the amount that transfers to Form 1040.
That 1,302 should not be included in your income, so it needn't be subtracted out.
Both programs simply disregards that amount, and lists it on Schedule 1.
Please continue to see if the 1,302 is listed after you finish reporting the sales.
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