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John D Watt
Level 2

Form 1099-K

I'm working on my daughter's 2020 Federal 1040 return.

 

She received a 1099-K which records "Payment Card and Third Part Network Transactions" for royalty payments related to a podcast that she produces.

 

TurboTax is unclear where to list these payments. When I click on "YES" on the page that asks do you have a 2020 1099-K and I click YES, TurboTax tells me it will deal with the figure later. 

 

Please point me to how to report the 1099-K income. Thank you!

6 Replies
RayW7
Expert Alumni

Form 1099-K

You can enter the income reported on your Form 1099-K (along with any cash or checks you received) as self-employment income on Schedule C.

  1. Open or continue your return.
  2. Search for Schedule C and select the Jump to link in the search results.
  3. Next:
    • If you’re entering info about your business for the first time you'll be asked some general questions about your business. After you answer them, you’ll be taken to the Let's enter the income for (your type of business) work screen.
    • If you’re returning to Schedule C, select Review or Edit next to your line of work and answer any other screens until you reach the Let's enter the income for (your type of business) work screen.
  4. Select Other self-employed income.
  5. On the Tell us about other self-employed income for your (type of business) work screen, enter your 1099-K information.
  6. Select Continue when finished.

If you are entering income from a 1099-K, remember that it reports the gross amount of the transactions. It doesn't include any adjustments for credits, refunds, discounts, or fees. You’ll have a chance to enter self-employment expenses in another part of your return.

 

-follow these links for additional information-

Form 1099-K Decoded for the Self-Employed - TurboTax Tax ...

What Online Business Owners Should Know about ... - TurboTax

John D Watt
Level 2

Form 1099-K

Schedule C

 

What action on TurboTax creates a Schedule C so that the 1099-K income can be recorded?

John D Watt
Level 2

Form 1099-K

I should add that my daughter has not formed a business. The income totals $714 for 2020

JeffreyR77
Expert Alumni

Form 1099-K

The income your daughter earned is considered self-employment income by the IRS. 

 

Let's clarify a couple of points to make sure you're going in the best direction. 

 

Your daughter's return can be prepared using IRS Free File delivered by TurboTax. 

 

She will need to report the income from the Form 1099-K on Schedule C. 

 

She also can claim deductions to reduce the amount of income that is subject to self-employment tax. 

 

If the $714 is her only income, she will have no income tax to pay but she will have self-employment tax unless she has expenses to lower the amount of taxable income. 

 

She likely has expenses such as microphone, headset, computer, internet. 

 

If her expenses are $314 or more, she will be under the amount that she would have to pay any self-employment tax as well.

John D Watt
Level 2

Form 1099-K

Clarifying

 

My daughter has regular W-2 income, capital gains, 1099-INT and 1099-DIV income.

 

I use a desktop version of intuit TurboTax Premier that I purchase every year. 

 

I understand that the 1099-K income is reported on Schedule C. In creating a Schedule C using Forms > Open A Form > Schedule C the very first action is to name the business. There is no business. Would she list her full name as it appears on her 1040?

CatinaT1
Expert Alumni

Form 1099-K

If she doesn't have a business name, nothing needs to be entered in the business name field.  

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