You have two options if you sold items much like selling personal goods at a garage sale, then, it is acceptable to report the costs as well as the income because this income would not be classified as a hobby or income from your own trade or business.
To do this in TurboTax:
- Option 1: reporting income from eBay via Other Miscellaneous Income
- From the left menu, go to Federal and select the first tab, Wages & Income
- Add more income by scrolling down to the last option, Less Common Income, and Show more
- Scroll down to the last option, Miscellaneous Income, 1099-A, 1099-C and Start
- Choose the last option, Other reportable income and Start and Yes
- Enter the applicable description and amount and Continue
- First, enter the income as received. It is essential that the full amount be entered.
- Next, enter an adjustment to reflect the cost of these items as an offsetting, as a negative amount up to the amount of the income. In other words, if the goods cost you $100 and Form 1099-K was for $10 in sales, the maximum cost allowable would be $10.
- Option 2 available in TurboTax Premier or higher: reporting eBay income as investment income
- Go to the search box and enter Investment Sales
- Select Jump to Investment Sales
- Select Other at the next screen, OK, what type of investments did you sell? and click Continue
- At Tell us more about this sale, enter in the name, such as Form 1099-K eBay and the Payer's EIN and click Continue
- At Now we'll walk you through entering your sale details, under the first dropdown menu, What type of investment did you sell? Select Personal Items
- Answer How did you receive this investment with an option from the dropdown menu.
- Enter the Description. If you are uncertain what date you purchased the goods, select Something other than a date so that TurboTax will enter Various
- Next, enter your Sale Proceeds and an equal amount for the Total Amount Paid and click Continue
- Select None of these apply at Let us know if any of these situations apply to this sale and Continue
- Continue through the rest of the prompts
