Retirement tax questions
You are reporting IRS form 1099-K and reporting personal sales.
If box 1a is $1,000 and I sold some items at a loss or had no gain was $600, $400 will be reported as Proceeds on IRS form 1099-B.
The $600 is reported at the top of Schedule 1 Additional Income and Adjustments to Income.
To report Personal item sales, follow these directions.
- Down the left side of the screen, click Federal.
- Down the left side of the screen, click Wages & Income.
- Scroll down to Other Common Income click on the dropdown menu.
- Click Start to the right of Form 1099-K.
- At the screen Did you get a 1099-K?, select Yes.
- At the screen How would you like to upload your 1099-K? click Type it in myself.
- At the screen Which type of income is your 1099-K for, select the button for Personal item sales. Click Continue.
- At the screen Let's get the info from your 1099-K, enter the information. Click Continue.
- At the screen Personal Item Sales, you are told that further information will need to be entered. You may report some or all items were sold at a loss or had no gain.
- Refer to the prices above. If $600 of the selling price will not be reported, enter $600 under I sold some items at a loss or had no gain.
- Learn More provides detailed information for the next steps. Click Continue.
- At the screen Your 1099-K summary, notice that the income relates to ‘Personal Items’. Click Done.
- At the screen Your income and expenses, scroll down to Investments and Savings (1099-B, 1099-K….). Click Add/Edit.
- At this screen, you will be asked to Review the Personal item sales (1099-K). Select Review.
- At the screen Now, enter one sale…., answer questions about the personal item sale.
- Refer to the prices above. Because you are only reporting the gain transaction, report $400 as Proceeds and the cost basis as Total amount paid.
- Click Continue.
- At the screen, Let us know if any of these situations apply to this sale, sales expenses may be recorded.
The entry will be reported:
- on Schedule D of the Federal 1040 tax return, and
- on line 7 of the Federal 1040 tax return.
Capital loss for a personal item sale reports $0 capital gain on line 7 of the Federal 1040 tax return.
