PayPal 1099-K in Illinois

[taxuser348484]

In 2024, I sold approximately $1,500 worth of personal items at a loss via PayPal.

Although this amount is below the IRS's $5,000 reporting threshold, I live in Illinois, which has a $600 threshold. I have entered the PayPal 1099-K into TurboTax and offset the amount using Schedule 1, since the items were sold at a loss.

Given that I exceed Illinois' $600 threshold, will TurboTax include the 1099-K in my Illinois state tax return, even though I am not required to pay federal taxes on it?

I just want to confirm that TurboTax is handling the Illinois portion of the 1099-K correctly.

[ThomasM125]

No, Illinois takes your federal adjusted gross income as the starting point for their taxable income. Since the income you received on the personal item sales is not included in your federal adjusted gross income, it will not appear on your state return.