LeonardS
Expert Alumni

Business & farm

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:

  1. Select Income & Expenses.
  2. Scroll down to Less common income and select show more.
  3. Scroll to the line Miscellaneous Income, 1099-A, 1099-C, and check start.
  4. On the page Let's Work on Any Miscellaneous Income scroll to the line Other reportable income and click start.
  5. On the page Any Other Taxable Income select yes.
  6. On the page, Other Taxable Income enter a description indicating Personal 1099-K and amount.
  7. Select continue.
  8. 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.

 

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