How do I complete/fill in information for Schedule 1, Addition Income and Adjustments to Income in Turbotax? What sub-section under "Wages and Income" will have that?

[sanketpatke]

I got 1099K from Paypal and need to offset those charges as goods purchased. What section in Turbotax will allow me the option to fill in the details? Says Schedule 1, Line 8z on IRS

[ErnieS0 · Accepted solution]

It depends on whether you received Form 1099-K because you are running a business, selling goods as a hobby or occasionally selling personal items.

Since you mention Form 1040, Schedule 1, line 8z, I’m assuming you received Form 1099-K for either hobby or personal sales.

Here’s how to enter a Form 1099-K in TurboTax when you sell a personal item for a loss:

1. Type 1099-k in Search (magnifying glass) in the upper right
2. Tap Jump to 1099-k
3. On “Did you get a 1099-K?" say YES
4. On “How would you like to enter your 1099-K?” choose either “Upload it from my computer” or “Type it in myself”
5. On “Choose which type of income your 1099-K is for," select Hobby Income or Personal item sales
   1. If you selected Hobby Income, check the box “This amount in box 1 is too high or includes some personal items, then enter your cost of goods purchased. This will put the net amount on line 8j. The IRS goes not allow you to deduct hobby expenses, but you can claim consistent and reasonably allocated cost of goods sold.
   2. If you selected Personal item sales, on “Personal Item Sales,” enter the total proceeds for items sold at a loss or no gain. The subtraction will appear on line 8z. Then fill in the rest of your information in “Your investments and savings.” Go to Wages & Income in the left column and EDIT "Investments and Savings" and review your PayPal info.