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if my 1099-Ks are my sole revenue for my resale business, do I enter those into turbo tax and then ZERO for the "income and sales" in the Business Income section?

I have 2 1099-Ks, one from paypal and one from eBay for my reselling business. Both represent the total revenue for the business ( without deducting any expenses like shipping or paypal / payment processing fees ). 

 

I enter those into turbo tax when it asks for them under the Business income and expenses section ( Schedule C) and my tax liability shoots up. Then on the NEXT page ( in turbo tax deluxe 2024 ) it asks for my income and sales for my reselling business

 

Here is my question: I feel like i already entered my income and sales when I entered my 1099-Ks. So I should enter zero in the box when it asks for income and sales amounts. Here is what turbo tax says in the help widget:

 

"Enter business income that is not on a 1099-NEC or a 1099-MISC. 

Other Receipts or Sales

Enter all gross receipts or sales that you have not already reported as Form 1099-MISC income, Form 1099-NEC income or as Form W-2 income.

If you are a cash basis taxpayer, money available to you at the end of the year is considered taxable income for that year. Money that is set apart for your use, credited to your account, or otherwise made available for you to use at any time is considered available.

If you receive a check but don't cash it until the beginning of the next year, you are still considered to have received that money in the prior year."

 

Thoughts on this? PLEASE HELP! I'm planning on entering zero in this box even though the above section written by turbo tax does not explicitly state that 1099-Ks are excluded from this section ( it says that NECs and MISCs are excluded ). I have a feeling it includes 1099-Ks because if I enter in my income and sales into this field (without a zero ) it more than doubles my income and my tax liability. 

 

Also, where do I enter shipping expenses and payment processing expenses into turbo tax for a reselling business?

 

Thank you SO SO MUCH in advance!

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1 Best answer

Accepted Solutions
DawnC
Employee Tax Expert

if my 1099-Ks are my sole revenue for my resale business, do I enter those into turbo tax and then ZERO for the "income and sales" in the Business Income section?

If you are using TurboTax Online Deluxe, you need to upgrade to Premium to enter business expenses.   

 

However, if you are using the desktop software, you can enter your business expenses (shipping and fees) in the Wages and Income section under Business Items.   Click on the Schedule C option and you will get to the expense section after entering all of your 1099s/income (don't enter them again if you already entered the income).   See the steps for desktop Deluxe below.  

 

   

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5 Replies
RobertB4444
Employee Tax Expert

if my 1099-Ks are my sole revenue for my resale business, do I enter those into turbo tax and then ZERO for the "income and sales" in the Business Income section?

First, if the two 1099-Ks are both for the same money that you received do not enter them both into the system.  You only need to enter the total amount that you actually received.  

 

And you only enter it once.  You are correct that you should enter zeroes in the follow up questions about income.

 

@zombitroid 

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if my 1099-Ks are my sole revenue for my resale business, do I enter those into turbo tax and then ZERO for the "income and sales" in the Business Income section?

the two 1099-Ks seem to be confusing people on this forum.. one is for my eBay sales, and the other one I get from paypal is for sales that I made on an external site... so I do add both of those 1099-Ks to my income.. if I eliminate one then I'm cheating on my taxes.

 

thank you for answering my question though.. so I put zero in that box.

 

Where do I enter shipping expenses and other reselling expenses like paypal fees, eBay processing fees, site fees, and cost basis for the goods sold??

RobertB4444
Employee Tax Expert

if my 1099-Ks are my sole revenue for my resale business, do I enter those into turbo tax and then ZERO for the "income and sales" in the Business Income section?

The two 1099-Ks represent the same money.  It was sent to ebay and then sent to you through Paypal.  If you enter both amounts then you will be taxed on the same money twice.  You should only be entering the actual amount of money that you received.

 

After you have entered your income into the system it will walk you through all of the expenses that you had in order to earn the money that you received.

 

@zombitroid 

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if my 1099-Ks are my sole revenue for my resale business, do I enter those into turbo tax and then ZERO for the "income and sales" in the Business Income section?

ebay sends my funds to my bank ( directly ) there is no paypal involved

the other sites i use to sell goods use paypal

 

they are separate 1099-ks

 

i don't see any column or box to put shipping expenses or site / paypal fees ( which are 3% )... do I just put it in whatever box it allows?

DawnC
Employee Tax Expert

if my 1099-Ks are my sole revenue for my resale business, do I enter those into turbo tax and then ZERO for the "income and sales" in the Business Income section?

If you are using TurboTax Online Deluxe, you need to upgrade to Premium to enter business expenses.   

 

However, if you are using the desktop software, you can enter your business expenses (shipping and fees) in the Wages and Income section under Business Items.   Click on the Schedule C option and you will get to the expense section after entering all of your 1099s/income (don't enter them again if you already entered the income).   See the steps for desktop Deluxe below.  

 

   

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
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