1099-K ebay / online sales

[COMP100]

I am currently employed in NY, single, do not own a home or have any assets. For many years i file using a 1040 / 1040 EZ form for federal. This year i may need to report additional income generated on ebay/online sales and will most likely have a 1099 form for those sales.  My question is, can i still use form 1040 or 1040EZ for federal? If so, where do i report the 1099 online earnings? If not, what form will i need to use? Of course, there will be many deductions such as shipping, supplies, phone, internet costs etc.... Where do those deductions get listed? Do i need a separate form for deductions?  Further, do i need to mail in the deduction receipts with my return or do i just keep them on file on my end?   And what about state reporting? I live in NY - how do i report this additional income for state returns?  Any help would be greatly appreciated. 

[jkellett2]

You will need to file a Form 1040 to include your income from the 1099-NEC that you will receive from your online sales.  This type of income is referred to as self-employment income and is reported on the 1040 using a Schedule C.  

Turbotax will guide you through the steps.  You will enter your income and expenses from the online sales on the same Schedule C.  Receipts and records of your income and expenses should be kept with your tax records.  It is not necessary to send those in with your tax return.

The information entered in the federal return will flow over to the NY return.  You will not need to enter it again into the state return.

Keeping complete and accurate records of your income and expenses will enable you to prepare your return easily.  Remember, you can always use TurbotaxLive to get assistance from one of our live experts if you have questions during the process.

[COMP100]

Is there an additional fee to use Turbotax Live during the process ?