1099K will not work on TurboTax. Can I skip it and if IRS reaches out blame this software?

[TotalHassle]

I am so frustrated by this 1099k nonsense. I sold close to 10k in personal goods online at a gross loss and uploaded the 1099k. Marked it as personal items and first tried to submit that all items were sold as a loss. Well it won't let me submit my taxes. So reading on here I changed it to some items sold at a loss. I kept the total blank and it brings up a 1099-B worksheet that is totally grayed out and I can't enter anything. So it's basically an endless loop. I am on a mac using Safari, is that the problem?

The fact that I even have to report this at all is stupid, and add to the fact that TurboTax is making this impossible with zero information is driving me mad. Can I delete the 1099k and just tell the IRS if they reach out that it was impossible to complete the forms? I have the receipts and can show the total loss easily. I'm just sick of screwing around with something that will amount to $0 to the gov or back to me.

[DianeW777]

If you know that each item was sold at a loss and you have the detail to back that up, you are not required to report income you did not receive. In this case, because the items were personal use, you are also not allowed to report a loss that would reduce other taxable income.

Another way to report the sales is shown below after deleting the Form 1099-K.

• If you're using TurboTax Online software and need to delete a form, click here.
• If you're using TurboTax Desktop software and need to delete a form, click here.

Next, enter your 1099-K as follows by entering the total as your sales proceeds and the cost basis the same number, showing zero gain or loss.

To enter your sale in TurboTax, follow these steps. 

1. Open or continue your return.
2. Navigate to the investment sales section:
   • TurboTax Online/Mobile: Go to investment sales. If using this application, make sure it is open
   • TurboTax Desktop: Search for investment sales and then select the Jump to link. 
     • Or Personal Tab > Continue > I'll choose what I work on > Scroll to Investment Income > Select Stocks, Cryptocurrency, Mutual Funds, Bonds, Other
3. Answer Yes to the question Did you sell any of these investments in 2024?.
   • If you land on  the Investment sales summary or Your investments and savings screen, select Add More Sales or Add investments.
   • Click this link for more information. Where do I enter Investment Sales?

[TotalHassle]

When I do this it says I have to pay you all $129 for an upgrade? I'm not paying extra for this, I must be missing something here, right? I clicked the link you put down and it asks if I had investment income in 2024 and then it pulls up a list of investment banks to link to. I don't understand where to go.

[DianeW777 · Accepted solution]

Yes, that entry could required and upgrade. There is one other approach that may not require an upgrade and again I emphasize the need for you to keep your records with your tax files as well as the 1099-K.

Other Miscellaneous Income:

1. Sign into your TurboTax Online account
2. Go to Tax Home (left panel)  Wages and Income  section
3. Scroll to  Less Common Income > Select  Miscellaneous Income, 1099-A, 1099-C
4. Select Other reportable Income > Enter a description (Personal Use Items Sold) and the amount
5. Repeat steps 2-4 with a second entry of 'Cost of Personal Use Items' and enter a negative (-100) for the same amount.

@TotalHassle 

[TotalHassle]

Thank you. I am going to submit this way. This whole 1099k thing is ridiculous, and will hopefully be eradicated by next year. It made the entire experience a massive pain and I got nothing out of it and neither does the the USGOV. Thanks for your help.