Get your taxes done using TurboTax

You can allocate the amount from the 1099-K however you want - the IRS doesn't "match" 1099-K income, but expects it will be reported in the appropriate place on your return.

If $5K was for business, just enter $5K in the General Income Category of Business Income. 

For sales of personal items (e.g. mother's jewelry), you can enter that as "Other reportable income" and, then enter an offsetting amount (negative number) for the cost basis of that jewelry. The cost basis of her jewelry would be its value on the date of her passing.

Reporting the income:

• Go to Less Common Income, Miscellaneous Income and Other reportable income (enter "other reportable income" in the Search Box and Select "Jump to other reportable income") 

• Continue to the screen "Other Taxable Income". Enter the description as "1099-K Sales" and the amount. These are NOT wages. 

Reporting the cost of items sold:

• Go to Less Common Income, Miscellaneous Income and Other reportable income (enter "other reportable income" in the Search Box and Select "Jump to other reportable income") 

• Continue to the screen "Other Taxable Income". Enter the description as "Cost 1099-K Sales" and the amount as a negative number.