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Level 2
posted Feb 5, 2022 8:22:45 AM

1099-K and how to handle donations made to me through Paypal

Hi all. I received a 1099-K for the 1st time and don't know how to handle some of the transactions. For 5 of my 8 transactions, I received money from people as part of a donation collection for a teacher appreciation gift. However, those people used their credit cards instead of using the friends and family option to send me the money. How do I input this into turbotax so I can correctly articulate the money was not income for me but rather for a gift?

 

My other 3 transcations were items that I sold. I believe I can input those into the stock category on turbotax to indicate the gain made from their selling. Is that correct?  

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1 Replies
Expert Alumni
Feb 6, 2022 2:02:26 PM

Yes, because Form 1099-K may report various types of income, you may enter the transactions on your return in whatever income category applies. Just be sure you report all the income reported on the 1099-K.

 

You will need to report these activities as business or investment income, but also report business/investment expenses you may have had.