I live in Illinois. For 2021 my wife was selling some in-game characters through eBay. I think she will get a 1099K. How do we file that?

[jeremy_mccool]

She began selling in maybe April but stopped in October. She made about $1400 and had 181 transactions. Is this considered personal property or how exactly would I go about filing this? Is there a place for a 1099K on turbo tax?

[MayaD]

If your wife had a profit motive, or is buying items to resell for more than she paid, then the income is considered Self Employment Income.

To report the income on your return:

• Log in to your account.
• Select Federal from the left menu.
• Go to Wages and Income then select Income and Expenses.
• Go to Self-employment income and expenses and click start. you'll be asked some general questions about your business. After you answer them, you’ll be taken to enter your Income and Expenses.

If it is something she did for fun—rather than to make a profit, then, it is can be considered as hobby.

To enter the hobby income in TurboTax:

• Go to Wages & Income
• Select I'll choose what I work on
• Go to Less Common Income select Start (or Update) for 
• Go to Miscellaneous Income.
• Scroll down to Hobby income and expenses

Hobby or Business?

 

[Hal_Al]

Q.  Is there a place for a 1099K on turbo tax?

A.  No. A 1099-K can be for any number of reasons.  You are expected to know why you got the money (and the form) and enter it in that place in TurboTax.

The two categories, described by MayaD, are the most common places to enter in TurboTax. 

Q.  Is this considered personal property?

A.  Maybe. It depends on what you sold.  If it was, indeed, just used personal property, the it is neither self employment or hobby income.  It's essentially the same as a garage sale/yard sale.  Nothing needs to be reported on your tax return, UNLESS you sold any individual objects for more than your cost basis (typically what you paid for it).  In that case you report only the profit as "other income".

For amore detail discussion see: https://ttlc.intuit.com/community/taxes/discussion/i-sold-some-personal-items-on-ebay-and-received-a...