Form 1099-K

Forum|Forum|4 years ago
January 29, 2022
1 reply
6 views

I'll receive a Form 1099-K from ebay this year. I'm selling personal items and not running a business. I'm way below the Federal minimums this year but I live in Illinois which has less generous minimums.

How do I enter the 1099-K data so that the Feds don't count it as taxable income but Illinois recognizes it correctly? I've read that it's possible to file this under Misc Income, but that would increase the Federal taxes also, right?

Again, I'm not running a business, just cleaning house. I don't think I need to use a Schedule C for this.

Thanks in advance.

HelenC12

Level 15

You don't have to report personal items that you sold if you sold the items for less than what you originally paid. Please see Do I have to report personal items that I sold? Just keep the 1099-K form with your tax return and any supporting documents from the sale of your personal property.

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dennishenleyAuthor

Level 2

Some items were sold for more than the purchase price while others sold for less. I can easily figure out the net profit. But how would I enter that in TurboTax if the 199-K has a much larger amount than the net profit?

LeonardS

Level 14

Yes, you may not be running a business and just cleaning the house. However, the IRS considers your sales activities on eBay as a business due to the fact that you sold items to generate income and the IRS requires that all income be reported.

If the amount reported on your 1099-K was just for paying bills, purchasing items, transferring funds etc. you would be able to report the amount as not subject to income tax.

You will need to file Schedule C Profit or Loss from Business to report the income on your 1099-K and your expenses, to include the cost of the items sold, to figure your net profit.

To enter your 1099-K on a Schedule C follow these steps: