I live in Virginia where the new threshold for reporting income from a third party network has been lowered to $600 with no minimum transactions. Last year (2020) we sold 11 items on eBay for the first time and received payment through PayPal of $1607. Today I received a 1099-K in the mail from PayPal. With some research online I found out the IRS has a reporting threshold of income $20,000 or more and 200 transactions before you need to file this with your taxes. Do I still need to file this income with both my federal and state taxes? Or is it just with Virginia that I need to? Also, I did not purchase the business version of TurboTax and I am not seeing anywhere to even add a 1099-K. When I click on to add this form in the Deluxe version it says to just add it in with my self-employment income, but this is only available on the business version of TurboTax. Is there a way to do this with Deluxe? We do not have a business. We only sold those 11 items on eBay and that was it.
