To enter:
- 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. Pay pal receipts for return of capital. 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 return of my investment. There was no income earned and enter a negative number for the amount of the 1099K.
- 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 return of your capital and none of it is pay pal income.
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