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Get your taxes done using TurboTax
There are two ways to report the expense to offset the income from Form 1099-K.
If you are reporting it as self-employment income, record the cancellation under the Income option Rebates & Refunds.
If you are reporting Form 1099-K as other income, report it and then report the offsetting negative amount by following 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 Ticket Re-Sale.
- Next, enter an adjustment to reflect the cost of these items as an offsetting, negative amount up to the amount of the income.
- For the cost description, include Cost of Personal Ticket and Cancelled Personal Ticket Re-Sale due to Covid-19.
- First, enter Form 1099-K as received. It is essential that the full amount be entered.
‎February 15, 2021
7:52 AM