I sold some personal items on Poshmark in 2024. I received a 1099-K. Where do I enter canceled orders?

[riebefoy]

I sold most items at a loss and a few at a gain. I already entered all of those orders individually. However, I noticed there were 6 canceled orders in 2024 and they are still included in the gross amount on my 1099-K. Where do I enter these canceled orders? I am not a business, but every time I go to schedule C it asks business information questions.

[PatriciaV]

If you refunded the money for the cancelled orders, you should adjust the amount from Form 1099-K by that amount. 

The easiest way to find 1099-K in TurboTax Online is to find Tax Tools in the left column >> Tools >> Topic Search. Type in "1099-k", click the topic in the list, then Go. In TurboTax Desktop, use the Search box or Topic List found in the header.

1. From the list of 1099-K's in your return, click Edit/pencil icon next to the once you need to work on.
2. Continue to the page "Let's get the info from your 1099-K."
3. Click the box for "This amount in box 1a is too high..."
4. Enter the amount of the cancelled orders in the box that appears as a positive number.
5. Continue back to the 1099-K summary page to save your entries.

TurboTax will adjust the box 1a income for the adjustment amount you entered.

[Sunshine_82]

Technically,  I never received the money because Poshmark doesn't pay the seller until 3 days after the buyer receives the item, but yes. The buyers received their money back. Should I still enter these transactions with the other transactions since they are part of the number of payment transactions given in box 3 on my 1099-K? 

[VictoriaD75]

No. You will not enter your cancelled sales from you Poshmark account if the revenue from the sale was not reported in box 1a. You cannot deduct these if they were not included in the gross revenue because you do not have sales revenue to offset. If they only affect the transaction count in box 3, they can be left off of the return. 

@Sunshine_82 

[Sunshine_82]

That makes sense. Thank you both for your help. Much appreciated!