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After you file
Yes, you are correct, you should not be paying any tax.
First, I recommend deleting all entries related to the 1099-K you have already entered. Check 1. 1099-K input, 2. Self-employment income & expenses and 3. Investments and Savings for any data related to the 1099-K and delete.
Next, follow these steps in TurboTax Online:
- Within your tax return go to the magnifying glass icon on the top right, type 1099-K and select the Jump to 1099-K link in the search results
- Choose Add a 1099-K
- The next screen will ask "Which type of income your 1099-K is for?" choose Personal item sales, then Continue
- Enter the information from your 1099-K
- After you choose continue, the next screen will show "Personal Item Sales". Here is where you choose "All items were sold at a loss or had no gain"
February 5, 2025
8:53 PM