eBay sent me a 1099K even though I was under the 20K limit. I believe this was because I live in IL that has a $600 reporting threshold.
I sold $1526 in new motorcycle parts for a loss on Ebay so from what I have read I can simply report this on schedule 1 line 8z as such:
Ebay 1099K sales $1526
Ebay 1099K sales loss $ -1526
This will zero out the income and will show the 1099K is acknowledged but all items were sold as a loss.
When I entered the 1099K, TurboTax did what I described above on Schedule 1 line 8z. It shows up this way when I view the Schedule 1 form in TurboTax. But when I print a PDF of the return, the Schedule 1 line 8z only says “See Stmt” with a 0 amount listed which doesn’t seem very informative.
I am not sure why I am seeing two different entries for the same line 8z on the form in the app vs the PDF. I want the information listed on line 8z to indicate the 1099K is acknowledged. I see a 1099K Summary form and a Schedule 1 “other income statement” form with the $1526 noted but I don’t know if these forms are sent to the IRS.
Why is there a difference between what the app and the PDF show and which version will the IRS receive?
Your Schedule 1 will be transmitted to the IRS along with your Form 1040. Schedule 1 is where "other income" is reported.
Go to your Schedule 1, and on line 8z and type in a description. There is a place on line 8z to enter a description. You would need to go to the section of TurboTax where you entered the income and change the reason for why you received it.
Click here for more information on Schedule 1.
Thanks for the information, that all makes sense.
My main question is why there is a difference between what is displayed in the app when viewing forms vs. what I see when I print a PDF of the return. I would think they would be the same.
Sometimes the entries for line 8z are too numerous to show; so a "Statement" is created separately that goes with the tax filing. The 1040 line will reference that "Statement". The line 8z is showing zero as it should and the statement, it appears, is showing the cancelling transactions. Everything is correctly printing from your description.