topic How to input the Form 1099-K in the case of employees in Get your taxes done using TurboTax

How to input the Form 1099-K in the case of employees

twentieth — Fri, 26 Feb 2021 17:46:51 GMT

Dear all,

I need some help reporting Form 1099-K. I have received it from Paypal for an amount of around $500 in total transactions of the year (mainly related to selling old books through eBay).

I am an employee working for a company (I receive the W2).

When I go to the section Other Common Income in TurboTax, and select Income from Form 1099-K there is the following message: "We don't need to create a separate entry .... because the income of the form should be already included in other income, as your self-employment or rental income". The problem is that I do not have income as self-employed, so I do not know where to report Form 1099-K.

Any suggestion is welcomed.

Thanks!

Ps: my wife is self-employed and we have the Home & Biz. TurboTax edition. However, Form 1099-K has my name on it.

Re: How to input the Form 1099-K in the case of employees

MinhT1 — Fri, 26 Feb 2021 18:03:38 GMT

If you receive this form 1099-K for selling old books on Ebay, you most probably sold these books for less than you paid for them. You have made a loss on personal items. This loss on personal items is not deductible and is not reported on your tax return.

If this is the case, you do not need to report this form 1099-K on your tax return. Just keep it in your tax records along with any proof that it was for the sale of old books.

Re: How to input the Form 1099-K in the case of employees

twentieth — Fri, 26 Feb 2021 18:29:52 GMT

Thank you for the answer. However, in case there is a need to report the Form, how can we do it in the case of an employed person?

Re: How to input the Form 1099-K in the case of employees

JeffreyR77 — Mon, 01 Mar 2021 01:26:58 GMT

The general rule is one is required to report all income regardless of source.

Extending that general rule to any income that is reported by another party to the IRS definitely should be reported on your tax return.

In the case of Form 1099-K, you report the income under Wages and Income, Other Common Income, Tax refunds, 1099-NEC, 1099-MISC, 1099-K.

If you are self-employed and the 1099-K is reported payments from a third party payment handler like PayPal, or a credit card company, you can enter your business expenses through self-employment expenses on Schedule C.

If you are not self-employed and these payments were incidental for sale of personal items you can enter a reversing entry by going to Wages and Income, Less Common Income, Other Miscellaneous Income, Other Taxable Income.

https://ttlc.intuit.com/community/taxes/discussion/re-i-received-a-1099k-of-1-000-sold-personal-items-on-ebay-how-do-i-report-this-im-not-a-business/01/1989600#M716574