1099k From paypal

Forum|Forum|4 years ago
January 29, 2022
15 replies
116 views

So I received a 1099k from PayPal even though I didn’t receive more than 20k or have over 200 transactions. I only received a little over $1500
My question is, how do I report this on my taxes. The situation is that most of the money received was from selling things on eBay, do I have to pay taxes if I sold used items for less than I bought them? If so is there a way I can deduct the price I payed for the item originally. Also a small amount of money I received was from a payout because I stream on twitch. This is already reported on another 1099, do I have to report it again and get taxed twice. If so is there a way I can avoid double reporting it?

Thanks in advance for any help!

Not A Product Question

Best answer by DaveF1006

Yes, you should report it but you can back out the income if you are very specific about what you do.

Go to wages and income>less common income.
Go to Miscellaneous Income, 1099-A, 1099-C
Go to Other reportable income
In the description field, " enter 1099k income for personal items sold on Ebay. Then put in the amount of the 1099K.
After entering this, there will be a summary page that appears. Select add another miscellaneous income item.
Here put in description 1099K is for personal items sold through ebay. This is not a business. Enter a negative amount for the amount of the 1099.
What this does is show the positive and negative amounts on line 8Z, which cancels out the income.
Be specific in your description fields for both of the miscellaneous income entries so the IRS will see how you justify this isn't taxable income. You will to make clear that this is for personal items sold and you are not actively engaged in a business of buying and selling.

JulieS

Level 15

If you sell used items and are not engaged in a business, you do not have to report the amount as self employment income.

If you sell used items and want to be considered as doing it as a business, you can deduct the cost of the items from the selling price as well as fees and postage. In that case you would complete a self-employment schedule for that activity.

The streaming income is also reported on the 1099 from Twitch, so you don't have to do anything else with it.

Form 1099-K is now being issued to anyone with more than $600 in third party transactions, but the IRS is aware that not all transactions are taxable income.

For instance, I often send money as a gift to relatives using Paypal.

To learn more about this topic, click here.

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Anonymous

Ok, but if they send the 1099k to the irs won’t they want me to report it. Am I going to have any problems if I don’t report it? I just don’t want to get audited for not reporting a form. Also I forgot to mention that I use a business PayPal since I don’t want donators and subs to see my address

DaveF1006Answer

Alumni - Intuit

Yes, you should report it but you can back out the income if you are very specific about what you do.

Go to wages and income>less common income.
Go to Miscellaneous Income, 1099-A, 1099-C
Go to Other reportable income
In the description field, " enter 1099k income for personal items sold on Ebay. Then put in the amount of the 1099K.
After entering this, there will be a summary page that appears. Select add another miscellaneous income item.
Here put in description 1099K is for personal items sold through ebay. This is not a business. Enter a negative amount for the amount of the 1099.
What this does is show the positive and negative amounts on line 8Z, which cancels out the income.
Be specific in your description fields for both of the miscellaneous income entries so the IRS will see how you justify this isn't taxable income. You will to make clear that this is for personal items sold and you are not actively engaged in a business of buying and selling.