Open TurboTax

Why sign in to the Community?

  • Submit a question
  • Check your notifications
or and start working on your taxes
Announcements
Your taxes, your way. Get expert help or do it yourself. >> Get started
Close icon
Do you have a TurboTax Online account?

We'll help you get started or pick up where you left off.

cancel
Showing results for 
Search instead for 
Did you mean: 
laurahkendrick
New Member

1099 Misc form, box 9, payer made direct sales of $5,000 but I only sold 156.35 worth of products. The rest was personal use. What do I do?

 
1 Reply
ToddL
New Member

1099 Misc form, box 9, payer made direct sales of $5,000 but I only sold 156.35 worth of products. The rest was personal use. What do I do?

You don't really need to do anything with the 1099-MISC. 

The payer sent this 1099-MISC to you because the IRS requires them to report "wholesale" sales greater than $5000. It's a heads up to the IRS (and you) that you may have business income to report.

If you "sold" $156.35 worth of products with the intent of making a profit, then that would be business income.

Items you kept for personal use or gave to family for cost only, aren't considered as used for business. Just keep good records of what you used yourself and for family.



About Community

Learn about taxes, budgeting, saving, borrowing, reducing debt, investing, and planning for retirement.

3.49m
Members

2.63m
Discussions

Manage cookies
v
ABCDEFGHIJKLMNOPQRSTUVWXYZabcdefghijklmnopqrstuvwxyz0123456789-_~