Yes, you should report it but you can back out the income if you are very specific about what you do.
- Go to wages and income>less common income.
- Go to Miscellaneous Income, 1099-A, 1099-C
- Go to Other reportable income
- In the description field, " enter 1099k income for personal items sold on Ebay. Then put in the amount of the 1099K.
- After entering this, there will be a summary page that appears. Select add another miscellaneous income item.
- Here put in description 1099K is for personal items sold through ebay. This is not a business. Enter a negative amount for the amount of the 1099.
- What this does is show the positive and negative amounts on line 8Z, which cancels out the income.
- Be specific in your description fields for both of the miscellaneous income entries so the IRS will see how you justify this isn't taxable income. You will to make clear that this is for personal items sold and you are not actively engaged in a business of buying and selling.
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