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!
You'll need to sign in or create an account to connect with an expert.
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.
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
Schedule C
What action on TurboTax creates a Schedule C so that the 1099-K income can be recorded?
I should add that my daughter has not formed a business. The income totals $714 for 2020
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.
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?
If she doesn't have a business name, nothing needs to be entered in the business name field.
Still have questions?
Make a postAsk questions and learn more about your taxes and finances.
Mike2959
New Member
94a15c3d6b91
New Member
s-nunezjr
New Member
Lily251
Level 2
abat2433
New Member
Did the information on this page answer your question?
You have clicked a link to a site outside of the TurboTax Community. By clicking "Continue", you will leave the Community and be taken to that site instead.