If you have a 1099-K, and you require an adjustment you can follow these steps.
First, delete the original entry unless it's posted as below.
Do not enter anything for a 1099-B
To post the 1099-K income go to:
- Federal
- Wages & Income
- Scroll to Other Common Income
- Select Form 1099-K
- Post the information.
To adjust the 1099 K
- Federal
- Wages & Income
- Less Common Income
- Select Miscellaneous Income, 1099-A, 1099-C
- Select Other Reportable Income
- Any Other Taxable Income? Select, yes.
- On the Other Taxable Income page
- Description: type in “Adjustment to 1099-K”
- Amount: enter in the adjustment amount as a negative number
What should I do if I received a 1099-K in error or for a personal item I sold?
Personal items sold at a loss
If you receive a Form 1099-K for a personal item sold at a loss, report the information on Form 1040, Schedule 1, Additional Income and Adjustments to Income with offsetting transactions. For example, if you receive a Form 1099-K for selling your couch online for $700 you will report:
- 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
The net effect of these two adjustments on adjusted gross income would be $0.
Personal item sold at a gain
If you sold an item you owned for personal use, such as a car, refrigerator, furniture, stereo, jewelry, or silverware, etc., at a gain, your gain is taxable as a capital gain. Report your gain as explained in the Instructions for Schedule D (Form 1040).For personal items sold at a loss, follow the instructions for Personal items sold at a loss.
Mix of personal items sold – some at a gain and others with a loss
Your gains and losses are to be reported separately and gains for assets cannot be offset by losses from the sale of personal assets.
If you sold an item you owned for personal use at a gain, see Personal items sold at a gain for information on how to report.
For personal items sold at a loss, follow the instructions for Personal items sold at a loss for information on how to report.
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