How to fill out the 1099k

[veneshawilliams]

Not sure what I'm doing

[RichardK · Accepted solution]

What is Form 1099-K?

Form 1099-K was introduced to report income received from electronic payments, such as credit cards, debit cards, Google Checkout, PayPal and other payers.

You should receive this form if you received payments from electronic or online payment services, or credit and debit card transactions. If you didn't get the form, they are only required when there are more than 200 transactions and the gross payments exceed a certain amount.

This form reports earnings information to individuals and businesses to be included on their tax returns. The IRS is establishing a compliance program using the data they collect with this form.

Enter the reported income and retain any 1099-Ks you receive for your records.

NOTE: If you have a Schedule K-1 (not the Form 1099-K), see Enter Schedule K-1 Information.

Entering Form 1099-K in TurboTax

Currently Form 1099-K income is not entered separately as an income form, but gets reported along with other similar income (as noted in TurboTax under Income from Form 1099-K). If you've already gone through the step-by-step interview and want to enter this income on your form:

If your Form 1099-K is for self-employment or business on a Schedule C, enter the income along with your other business income in TurboTax.

If your Form 1099-K is for rental income (not common), enter this income along with your other rental income in TurboTax.

If your Form 1099-K is for casual one-time sales and is not a business or even a hobby with recurring income, enter the income in TurboTax under:

1. Under Wages & Income, click I'll choose what I work on.
2. Scroll down to the Less Common Income group, and
   next to the Miscellaneous Income, 1099-A & C topic, click the Start/Update button.
3. On the Let's Work on Any Miscellaneous Income screen next to Other income not already reported on a Form W-2 or Form 1099, click Start/Update
4. Answer Yes about other wages and Continue through the screens to the Any Other Earned Income screen. 
   Answer Yes to receiving other wages and follow the prompts.

[cpavt1]

If you made casual sales of personal use property such as outdoor gear, household items, etc. (which you likely paid more for than the amount received upon sale) report the sale on Form 8949 and Schedule D as "Not Reported on 1099-B".  Record as short-term if you owned the property for one year or less, otherwise as long-term.  Put an equal dollar amount in the "cost or other basis" section of Form 8949.  Therefore the gain/loss is zero.  I also like to indicate in the description area as follows:  "Personal Use Prop - Loss Limited".