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Get your taxes done using TurboTax
You do not need to start a Schedule C as if this was self-employed income without a trade or business. But, you cannot report a loss, either. The maximum you can deduct from the proceeds is the amount of the proceeds.
In TurboTax Deluxe or higher: reporting it via Other Miscellaneous Income is acceptable to the IRS.
- 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.
‎January 31, 2021
8:31 AM