It is possible to report the IRS form 1099-K income as incorrect by entering the 1099-K as other income and selecting This amount in box 1a is too high or includes some personal transactions.
In TurboTax Online, you would report other income by following these directions.
- Down the left side of the screen, click on Tax Home.
- Click on the down arrow to the right of Review.
- Click on the blue band labeled Review.
- Down the left side of the screen, click Federal.
- Down the left side of the screen, click Wages & Income.
- Scroll down to Other Common Income click on the dropdown menu.
- Under Your income and expenses, click the button to the right of Form 1099-K.
- At the screen Did you get a 1099-K? click Yes.
- At the screen How would you like to enter your 1099-K? click Type it in myself. Click Continue.
- At the screen Choose which type of income your 1099-K is for, select the button for Other income. Click Continue.
- At the screen Let’s get the info from your 1099-K, enter the information.
- Note the box "This amount in box 1a is too high or includes some personal transactions."
- Click Continue.
- At the screen Your Other 1099-K income, you enter further information for the Other income. Click Continue.
- At the screen Your 1099-K summary, notice that the income relates to Other income. Click Done.
The entry will be reported:
- on line 8z of Schedule 1 of the Federal 1040 tax return, and
- on line 8 of the Federal 1040 tax return.
At the top of Schedule 1, note the amount reported in error or for personal items sold at a loss.
The IRS form 1099-K for $65,000 represents distributions from gambling winnings. You are reporting $65,000 as gambling winnings and you are explaining that you did not receive an IRS form W-2G.
You are reporting the full $65,000 distribution which you should be able to explain should the IRS question your return. To document your winnings and losses, the IRS requires that you maintain a log of your winnings and losses as a prerequisite to deducting losses from your winnings. Your winnings include each win during the year.
See TurboTax Help.
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