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Level 4
posted Feb 19, 2022 12:17:06 PM

1099-K vs 1099-Misc

My student daughter has received a 1099-K statement from PayPal, which shows an income of $618 for the sale of some stuff on auction sites. Now she has a W-2 form from the company she is working on during the weekend. But she can't find 1099-K in the Turbo tax e-file, which keeps requiring her to upgrade to Deluxe if she has to. So she has tried another free e-file site to file the return, and while working on it there she was asked to put down the number under 1099-Misc income. When she did, it showed she owed $26 to IRS, while she has a refund of $100 from the state. Actually, she paid that amount when she file the tax return. 

So, this is my question: is it okay for her to use that 1099-misc instead of 1099-K? 

0 2 698
2 Replies
Expert Alumni
Feb 19, 2022 12:33:04 PM

No, you can't substitute a 1099-MISC for a 1099-K if that is what she received. She can report the income as other income.

 

To enter other income:

  • Federal Taxes 
  • Wages & Income 
  • I'll choose what I work on -> scroll to the bottom and under 
  • Less Common Income select Start (or Update) for 
  • Miscellaneous Income
  • Other reportable income and you can enter your own description(s) and amount(s).

 

 

Level 4
Feb 19, 2022 12:36:00 PM

She tried, but Turbo keeps requiring her to upgrade to its Deluxe edition, so she had to use a different free e-file to put down that amount under 1099-misc. She paid $26 in federal tax already.