I received a 1099K from PayPal. I sold some personal items on PayPal last year, which is around 4K. I am confused about how to report them and hope I can get some help here.
I purchased Turbotax 2022 premier desktop version. I found that in the 1099-MISC and Other Common Income, I can report my 1099K. However, it seems like I have to manually add a corresponding negative amount in Investment Income as 1099-B (which I did not receive). And in the Form 1040, this income becomes a short-term Capital Gains and Losses in Schedule D.
However, based on IRS instructions - https://www.irs.gov/businesses/understanding-your-form-1099-k
Such "Personal items sold at a loss" should be reported in:
- Part I – Line 8z – Other Income – Form 1099-K Personal Item Sold at a Loss $700
- Part II – Line 24z – Other Adjustments - Form 1099-K Personal Item Sold at a Loss $700
So, is it fine to report 1099K as an investment income? I know there are some differences between the desktop version and the online version. I have also tried to report the 1099K amount under Less Common Income - Miscellaneous Income, 1099-A, 1099-C. In exported PDF, it is also not shown in 8z and 24z but in
Schedule 1: Additional Income and Adjustments to Income
Anyone know how to do it right?
