You can continue with this entry, or there is a second option.
To answer what to do next with what you have entered so far with the first option, reporting the income as an investment sale and when you already have entries in this section:
At Tell us about this sale, start with #4 in the list above so that you can report it as not from Form 1099-B, as Personal Items, and how you acquired it--most commonly, the goods were purchased.
Alternatively, delete what you have entered so far for your 1099-K from eBay in the investment sales section. Then, proceed with Option 2 and instead report Form 1099-K via Other Miscellaneous Income, which is also acceptable to the IRS.
- Option 2:
- 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 Form 1099-K 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.
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