OK, so, I got a 1099K from Paypal. But I can't figure out how to enter it - it's 99% just from selling personal items, not from self-employment. What do I do in TT?

[stantonporsche]

 turbotax Deluxe only allows entry for 1099-K but nowhere to enter information 

turbotax Premier walks you through everything 

the big question is if there is a work around using turbotax deluxe

[stantonporsche]

how to do this on Deluxe edition

that is enter all the details of the sales 

[JamesG1]

1099-K entry may require different versions of TurboTax.

Personal item sales uses minimum of Premier.

Self-employment, farm uses minimum of Self-employed.

The January 27, 2023 IRS update (page 87) permits the use of IRS form 8949 / Schedule D Capital Gains and Losses to report Personal item sales. 

@stantonporsche  

[stantonporsche]

the work around in turbotax deluxe is to enter info on stocks, bonds section

enter code F for long term sales not provided on 1099-B 

(assume long term item sold)

it treats person item as a stock I believe but you can give description of the item

this will generate a 8949 

Also to generate on line 8z schedule 1,

Miscellaneous Income, 1099-A, 1099-C

enter two items

person item at loss: 200

person item at loss : -200

this will put both items at zero on line 8z but I guess you can manually enter 200 

the issue is with line 24z( turbotax cannot generate number here to offset) 

wondering if can manually enter 200 on line 24z

but will this cause filing issues or program issues 

[MarilynG1]

You are reporting Income in the Investments section (as shown in screenshot above).   

To offset this income on your tax return (if you actually sold personal items at a loss), only make the negative entry in the Miscellaneous Income section.  

Here's more info on 1099-K for Personal Item Sales. 

@stantonporsche

[stantonporsche]

but how do you get Turbotax to generate number on line 24z to offset number that generates on line 8z?

if the amount is large like say $50,000

just putting this number down on schedule 1 , might raise eyebrows from IRS because no explanation on the items other than saying : " Form(s) 1099-K items sold at a loss". 

wondering if much better to enter info on 8949 since more details on the losses 

[stantonporsche]

If you just put negative entry in miscellaneous, turbotax sees it as a loss and enters money owed to you 

but you cannot take deduction on loss from person property 

only way to fix this is to put same entry but positive number as well 

[MarilynG1]

Your positive entry goes in the Investments section, under Wages & Income.

Type '1099-K' in the Search area, then click on 'Jump to 1099-k' to get to this section. 

@stantonporsche  

[dcolucci13]

In 2021 TurboTax said you do NOT need to enter 1099-K info if it was self employment income (sales) as you would instead list the income (sales) on Schedule C.  But this year this TT has changed and asks if you have 1099-Ks and then choose if it is for self employment income, but when I do that, AND list my self employment sales, its double counting.  

So, is it ok to NOT to list individual 1099-Ks I got (paypal, ebay, etsy) for my self employment business and JUST list my sales in the Schedule C like in 2021 ?  I assume this is correct.  Please advise and thanks!

@MarilynG1 @JamesG1 

[PattiF]

Yes, it is OK to not list the individual 1099-Ks to record the income that you received. As long as you do enter it for the Schedule C income, it will be fine. The IRS matches income and you will have entered the amounts from your K-1s.

@dcolucci13 

[JillGipson]

Hi Kathryn. Would you please clarify something for me from your response above?  When reporting 1099K income from sale of personal property under Option 2 for the Deluxe version, I have input the 1099K amount as "Other Reportable Income".  Where do I enter my offsetting adjustment amount? I can't find a place to do that. Thanks so much for your help!

[DaveF1006]

 You would enter this under other reportable income again. 

1. Go to the Miscellaneous Summary Screen
2. Select add Income item
3. In the description Box, type in 1099K income excluded for sales of personal items and then type in the income on the 1099 K and report a negative value -XXX.00

[JillGipson]

Dave, thank you so very much for explaining where the entry goes. Very clear instruction and I got it done! Thanks again! 🙂