KathrynG3
Expert Alumni

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:

 

  1. From the left menu, go to Federal and select the first tab, Wages & Income.
  2. Add more income by scrolling down to the last option, Less Common Income, and Show more.
  3. Scroll down to the last option, Miscellaneous Income, 1099-A, 1099-C and Start.
  4. Choose the last option, Other reportable income and Start and Yes.
  5. 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.

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