Possibly. It depends if you have decided to open a trade or business for reselling jewelry. If you are selling these items more as if it were an online garage sale, then these are personal property sales, instead.
If you are in a trade or business, report Form 1099-K as self-employment income & expenses in the Wages & Income section.
Otherwise, to report the other income, follow these steps:
- 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.
- For a description, include Form 1099-K and Personal Property Sales
- Next, enter an adjustment to reflect the cost of these items as an offsetting, negative amount up to the amount of the income. Please note, items received from your mother's estate are now your property.
- For the cost description, include Cost of Personal Property
- 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.
