How to reconcile 1099-K for eBay sales?

[Lynn G1]

Hello all and thanks in advance for your kind help. 

After completing  my taxes using Turbo Tax Premier and completing the review it generates 1 error.  I am hoping one of you can help me correct this error. It reads: “Capital Asset Sale Worksheet (eBay) Amount from Form 1099-K has an amount from linked Form 1099-K, but the sale proceeds on this worksheet don’t match the payment amount from Form 1099-K. Add sales on this worksheet with sales proceeds to match the amount reported on Form 1099-K.”

I sold 300 items on eBay last year, so I hope that I don’t need to do this for all of these items. Also, for whatever reason, last year, when I sold the same amount, this issue never came up.

Can one of you please help me figure out what is going on and what I need to do to correct this so that I can electronically file my taxes?

Thanks once again to all of you!

[ThomasM125]

You need to go to the Wages and Income section, then Investment Income, then Stocks, Cryptocurrency, Mutual Funds, Bonds, Other and update that section. On the first screen you come to you will see a list of your Ebay sale items. You need to edit them and enter in the cost basis and other information requested regarding each sale.

Since you sold 300 items though, it seems like you are self-employed, in which case you could choose that option for the type of property sold, in the section where you enter the 1099-K, and then you would not have to report the cost of each item separately. In that case, however, your income would be considered self-employment income and you would be subject to self-employment tax. 

If you go the self-employment route, after you enter your Form 1099-K sales, you need to go to the self-employment section to enter in the cost of the items sold as one entry.

[Lynn G1]

Hello Thomas and thank you very much for your quick response. Thomas, yes, I did indicate that I am self-employed. Because I declared that as my occupation and have also deducted a home office, etc., I believe that TT knows that I am self-employed. Also TT has had me answer many other relevant questions related to self-employment.   However, that single error remains.  Maybe if I can figure out where to enter in the cost of the items sold as one entry.  Can you please help me figure out where to go to do this? Which form, etc.?

Thanks very much once again for your kind help!!!

[ThomasM125]

When you enter your 1099-K form you need to choose Self-Employment Income on the screen that says Which type of income is your K-1 for? After you make that entry, you will be asked to link the entry to a self-employment activity on the screen that says Your Self-employment K-1 income. It seems that at least one of your entries was not linked so TurboTax does not know what business to assign the income to. So, you need to look at each 1099-K entry and make sure you assigned it to a self-employment business.

The cost of good sold entry is in the self-employment section. Update your business entry and on the screen that says Your (name of business) Business, choose the Inventory/Cost of Good Sold entry. You will be asked to enter your beginning and ending inventory. You can skip that question if you don't want to deal with inventory. On the next screen that says Let's get the cost of your Goods, you can use the Cost of Purchases option to enter the cost of your goods sold.