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You will report your 1099-K gross income, as well as your expenses, on a Schedule C (self-employment income). For tax purposes, self-employment income includes any part-time businesses or "side work" performed in which you are in business for yourself, rather than another person. You are also considered self-employed if you engage in business-like activities where you intend to make a profit.
Please follow these steps in TurboTax to add your Schedule C:
have a 1099K from Paypal where i sold or bought parts etc for my personal use. i do not have a business, i am retired. amount was $2509.69 and 32 transactions over the year (2020). can i just enter as other income since it isn't a business? i know i will owe the fed tax but it is confusing as it keeps asking about a business which i do not have. also how will this roll over to my Illinois state taxes. i called them and they said when i apply it to Federal it will generate to them. i'm confused. help
You don't need to add amount form 1099-K as your income if you don't have a business. If you had any gain on the sales, then you need to add the income to your tax return. The form 1099-K is informational and show you amounts received, if doesn't reflect your expenses. It is your responsibility to do the calculation and keep your record.
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