How do I enter a 1099-K for personal item sales?
Form 1099-K tracks income you made from selling goods or providing services via payment apps and online marketplaces. Examples include PayPal, Venmo, Square, Etsy, Uber, and eBay.
You should receive a 1099-K if you made more than $20,000 and the number of transactions exceeds 200 on one of these platforms.
Even if you don't receive a 1099-K, or you make less than $20,000, you still need to report all taxable income to the IRS.
Selling personal objects is different from self-employment income or hobby income.
Examples of personal items include:
Baseball cards
Concert or movie tickets
Used computers or electronics
Cars
Used clothes
Follow these steps to enter your 1099-K using TurboTax Premium:
TurboTax Online
Open or continue your return.
Go to 1099-K.
Follow the onscreen instructions to enter your 1099-K.
TurboTax Desktop
Open or continue your return.
Search for 1099-K and select the Jump to link.
Follow the onscreen instructions to enter your 1099-K.
Each gain or loss from a personal item sale needs to be reported separately. If you had a loss on the sale of any personal item, it can't cancel out any gain on the sale of another personal item.
Example: Tyrone bought a couch for $400 and sold it two years later for $200. Since he sold it for less than his original purchase price, the loss can't offset other income, and the sale would be reported as $0 on his tax return. However, when Tyrone bought a table for $200 and sold it for $300 two years later, he had to report the $100 gain as taxable income.
