1099K from paypal where do i enter it and do i need to?

[David971]

I'm using turbo tax deluxe and looking to enter a 1099k paypal sent me, i only sold a little over $2000 worth of things on ebay is it still necessary to report it?

I was under the impression you needed to sell $20,000 or have 200 auctions in the state of Va.

I am only a individual that sells electronics once in awhile that i have previously bought to fund other purchases such as XBOX, PS4, Computers, Camera equipment etc.

If i must claim the $2000 i have sold can i also claim the ebay/paypal fees and the original cost of the item?

Thank You

[ColeenD3 · Accepted solution]

You must claim all your income. If you are not in the business of sales and this is more of a hobby, or you are just selling used your own used items, you do not need to claim it as Self-employment income. However, you can't take expenses. Only on Schedule C are expenses allowed.

To enter hobby income and expenses in TurboTax please follow these steps:

• Click on Federal Taxes tab
• Choose Wages and Income
• Scroll down to Less Common Income and click start to to right of Miscellaneous Income, 1099-A, 1099-C

[David971]

Can you please explain what is considered a Hobby expenses in my case?

Thank You!

[MayaD]

 Taxpayers can usually deduct ordinary and necessary hobby expenses within certain limits:

• Ordinary expense is common and accepted for the activity.
• Necessary expense is appropriate for the activity.

Hobby Income and Expenses.