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posted Mar 17, 2025 4:42:41 AM

How do I properly enter income from a 1099-K for sale of personal items (ebay) where I did not make a profit?

I am following all the prompts, but it keeps flagging my return and is directing me to enter self-employment income (Schedule C), however this was for personal items and not a business. If I try to enter it as hobby income instead, it is increasing the amount of taxes I owe. When I had the same situation for tax year 2022, it entered it on a Schedule 1.

0 1 2684
1 Replies
Expert Alumni
Mar 17, 2025 5:58:13 AM

When selling personal items, the income shouldn't normally be reported as self-employment or hobby income. Instead, it should be reported as the sale of personal items. 

 

Here’s how you can enter the income from a 1099-K for personal item sales in TurboTax:

 

Follow these steps to enter your 1099-K using TurboTax Premium:

  1. Open or continue your return. Be sure you are signed in for the link in Step 2 to work.
  2. Go to 1099-K. 
  3. Or In TurboTax, click search (magnifying glass icon, type "1099-K" in the search bar, press Enter, click the "Jump to 1099-K" link
  4. Follow the onscreen instructions to enter your 1099-K.
  • Each gain or loss from a personal item sale needs to be reported separately. If you had a loss on the sale of any personal item, it can't cancel out any gain on the sale of another personal item.
  • Example: Tyrone bought a couch for $400 and sold it two years later for $200. Since he sold it for less than his original purchase price, the loss can't offset other income, and the sale would be reported as $0 on his tax return. However, when Tyrone bought a table for $200 and sold it for $300 two years later, he had to report the $100 gain as taxable income.