1099K

Forum|Forum|1 year ago
February 19, 2025
1 reply
51 views

Hi. I sold tickets thru ticketmaster this year. I received a 1099K and do not know how to proceed. Here is my situation. Numbers are not actual but are representative.

1099K has $15,000 in Box 1A and shows 41 transactions in box 3. Note this $15,000 seems to have no relevance to my actual sales or even posting amounts. My guess is that this is what TM received including fees and markups from buyers. Does this number go anywhere and is it known that this number does not relate to my actual sales or will I have to explain it?

I actually had 40 transactions and it was confirmed by Madison Square Garden. I called TM and they said the 41st was for tickets issued for a playoff game that never got played and thus the transaction shows as cancelled.

I actually paid $8,000 for the tickets in the 40 transactions and sold them for $12,000. (includes all 40 transactions whether sold for profit or loss)

3 of those 40 transactions resulted in losses. For those 3 loss transactions, I paid $400 for the tickets and received $300 back.

I do not know how to enter this into turbo tax. What do I do on 1099K section? Where do I put individual transactions? Please be as detailed as possible as this is all very confusing.

Ask the Experts - Deciphering - Feb 2025

RobertB4444

Level 15

Since this appears to be a side business that you're running and not personal item sales then you will need to declare this as self-employment income.

In TurboTax you'll scroll down in the wages and income section until you reach 1099-MISC and other common income. Click start next to the 1099-K. Enter your 1099-K exactly as it is printed. The IRS has a copy of that and will expect to see the full amount from the 1099-K on your return.

You'll need to figure out what the Ticketmaster fees were - that should be the difference between what you received for your sales and what is on the form. Then you will enter the cost for the tickets that you sold. You will owe tax on the profit over and above the fees and the cost of the tickets.

@Philski

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PhilskiAuthor

Level 2

I actually have season tickets and go to about 1/3 of the games due to distance and conflicts. Does this still count as a side business and not personal sales?