Yes, this does not appear to be a personal sales issue. Personal sales would be she acquired an item and then sold it. This sounds like your wife embroiders several items over time and then sells them a craft shows. This would be hobby income. You do not need to deal with a 1099B for that income.
- In the "Wages and Income" section
- Go back to the "Investments" topic and delete any entries there for the craft income.
- Confirm
- Scroll to "Other Common Income"
- Revisit the 1099K topic.
- Edit the 1099K item if it is still there or Add a 1099K if needed.
- When asked about the type of income select "Hobby Income" under the Occasional Income category
- Put in the form information and if the gross amount shown includes other personal items click that box and enter the personal amount included
Now the hobby income will show on Schedule 1 line 8J which will flow to line 8 on the form 1040 and will not be subject to "Self-employment" taxes
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