1099-k

Forum|Forum|4 years ago
February 26, 2022
1 reply
4 views

Hi, I’m not paying the $29, I’m gonna start here and ask around, but does it really matter if the money from a 1099K is said to go in the self-employed section or can I put in other income? Aside, The IRS doesn’t care if someone has a business bank account or just a bank account as long as money is recorded, may not be best analogy. I do not own a business, but sold on eBay

ColeenD3

Level 15

Yes, it absolutely matters. In brief, if you sold old items you had laying around your house and made no profit, that is other income.

If you purchased items for resale with the intention of making money, you have a business.

Anonymous

in the middle of your two examples, I sold stuff that I own which so happen to be like $5000 in 2021. I don’t have a registered or any type of business structure.

AliciaP1

Level 13

The 1st situation @ColeenD3 posted fits your statement. If you made a profit on the sale of the items (which means your original cost was less than the $5,000 you sold it for) you report the 1099-K as Other Income. If you sold the items for a loss, you cannot take the loss as a deduction.

You can do this in TurboTax Online by following these steps:

Within your tax return click on Income & Expenses at the top of the screen
Scroll down to Other Common Income and click Show more
Click Start next to Form 1099-K and enter the amount of net amount of income you received (after deducting the cost of the items and the fees from your payment processor)

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