It is important that you report the information on your 1099-K. The IRS receives a copy of your 1099-K and will take action if you do not report the 1099-K on your tax return.
You may report any items on your 1099-K that are not related to business activities such as payments to friends and family, coffee & donuts from the local store, payments to local stores, etc., as other income.
You will need to make two entries for your non-business items; one as a positive amount to show the personal items reported on the 1099-K, the second as a negative value. This reports the personal 1099-K items and removes them from being taxable income.
To enter your personal 1099-K items sign in to your TurboTax account if it is not open and follow these steps:
- Select Income & Expenses.
- Scroll down to Less common income and select show more.
- Scroll to the line Miscellaneous Income, 1099-A, 1099-C, and check start.
- On the page Let's Work on Any Miscellaneous Income scroll to the line Other reportable income and click start.
- On the page Any Other Taxable Income select yes.
- On the page, Other Taxable Income enter a description indicating Personal 1099-K and amount.
- Select continue.
- Select done on the next page
Repeat the above steps again this time in step 6 add the amount as a negative value
This will report your personal 1099-K items and remove them as taxable income. Any remaining amount will be reported as business income.
@Raiofhope
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
