1099-K Personal Item Sales question

[holtm70]

Hi! I have a question regarding entering my 1099-K personal item sales for both Depop and Paypal. All the income I receive through Paypal is solely through Depop (online selling platform). But I am confused whether to enter the same clothing sales info. for both boxes when filing on Turbotax. For Depop Limited, I listed each and every item I've sold last year, but my Paypal 1099-K shows monthly earnings rather than individual sales, so I am confused on what to enter here. I have completed the earnings for the Depop Limited box, but don't want to repeat the same information twice. Should I even fill anything out for the Paypal section? I have already scanned the 1099-K into Turbotax.

Thanks

  

[KrisD15]

To clarify, are you saying you received two Form 1099-K for the same income? 

Do they report the same yearly amount? 

If yes, you should only enter one of the forms into the TurboTax program but keep both with your tax file. 

There is no reason to enter duplicate income. 

If you only received one 1099-K, for example only from e-bay, only enter that one 1099-K.  

You have the option of reporting each sale or all sales as a summary. Usually a summary is easier and just as accurate unless you have gains on several big ticket items that you want to separate. 

[holtm70]

@KrisD15 My Paypal 1099-K income is showing differently than Depop, which is where I get confused because I earn my Depop sales through Paypal. I have completed all of my tax information yet when I go to e-file this keeps popping up. What should I do? Inserting a picture

[JohnB5677]

If you have a 1099-K, and you require an adjustment you can follow these steps.

First, delete the original entry unless it's posted as below.

Do not enter anything for a 1099-B

To post the 1099-K income go to:

1. Federal
2. Wages & Income
3. Scroll to Other Common Income
4. Select Form 1099-K
5. Post the information.

To adjust the 1099 K

• Federal
• Wages & Income
• Less Common Income
• Select Miscellaneous Income, 1099-A, 1099-C
• Select Other Reportable Income
• Any Other Taxable Income? Select, yes.
• On the Other Taxable Income page
  • Description: type in  “Adjustment to 1099-K”
  • Amount: enter in the adjustment amount as a negative number

What should I do if I received a 1099-K in error or for a personal item I sold?

Personal items sold at a loss

If you receive a Form 1099-K for a personal item sold at a loss, report the information on Form 1040, Schedule 1, Additional Income and Adjustments to Income with offsetting transactions. For example, if you receive a Form 1099-K for selling your couch online for $700 you will report:

• Part I – Line 8z – Other Income – Form 1099-K Personal Item Sold at a Loss $700
• Part II – Line 24z – Other Adjustments - Form 1099-K Personal Item Sold at a Loss $700

The net effect of these two adjustments on adjusted gross income would be $0.

Personal item sold at a gain

If you sold an item you owned for personal use, such as a car, refrigerator, furniture, stereo, jewelry, or silverware, etc., at a gain, your gain is taxable as a capital gain. Report your gain as explained in the Instructions for Schedule D (Form 1040).For personal items sold at a loss, follow the instructions for Personal items sold at a loss.

Mix of personal items sold – some at a gain and others with a loss

Your gains and losses are to be reported separately and gains for assets cannot be offset by losses from the sale of personal assets.

If you sold an item you owned for personal use at a gain, see Personal items sold at a gain for information on how to report.

For personal items sold at a loss, follow the instructions for Personal items sold at a loss for information on how to report.

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