Should I be concerned that line 1h of my 1040 shows 0, despite income reported on a 1099-K? Selected all items at loss or no gain in TT (which is true).

6 replies
69 views

Or should I make sure that the reported 1099-K income shows on my 1040, and make an offsetting entry elsewhere such as miscellaneous income?

ThomasM125

Alumni - Intuit

You should not be concerned. The personal items sold at a loss will appear on your Schedule 1, Part I as Additional Income but will not appear as taxable income on your Form 1040.

**Say "Thanks" by clicking the thumb icon in a post. **Mark the post that answers your question by clicking on "Mark as Best Answer"

wa1fhy

Level 2

This is all fine and good, but are you aware that if the box at the top of Schedule 1 is the only numerical entry on Schedule 1, then Schedule will NOT be included in your return? Might confuse the IRS when they try to match the 1099-K amount and the number is nowhere to be found in your return.

I complained about this a few weeks ago and apparently, as of TT Basic Windows Version [phone number removed], it still functions that way.

The logic appears to be: if there are any entries on Schedule 1, lines 1 through 26, include Schedule 1; otherwise do not include Schedule 1.

The logic should be: if there are any entries on Schedule 1 OR if the 1099-K block at the top has an entry, include Schedule 1; otherwise do not include Schedule 1.

The temporary fix that I discovered is simply to go to line 8z and enter $0. Then TT will include Schedule 1.

Or am I completely out to lunch on this issue?

Megaleg07

Level 2

I am having the exact same issue as you. Have you received any additional guidance for this issue? I received a 1099-K, reported personal item sales all at a loss, but $0 of additional income showing on Line 1h of 1040 and no Schedule 1 automatically generating through TT. Spoke with a TT rep via phone and was told that TT has a record of me reporting the sales should anything ever come up, but I don’t love the idea of waiting to be contacted by the IRS to confirm that I appropriately reported these sales.