Poshmark 1099

[ggabbert317]

This year I began selling on Poshmark.  Based on my sales report I will be receiving a 1099 from Poshmark because I have hit the $600 mark.  All items I have sold have come directly from my close and not sold for profit . For example, if a shirt was originally $50, but it sold for $20. I know I am required to include the 1099 In my tax return, but will I be taxed on that money since the items were sold for less than I bought them for? And when I am filling out my taxes on turbotax, where do I include the 1099 and say these items were sold at a loss? 

[Bsch4477 · Accepted solution]

Instructions will be given when the 2023 tax program is out but the general concept will be that you report the amount of income from the form you will receive from Poshmark and then zero it out by reporting the same negative amount as other income with the text “personal items sold at a loss”.

[ggabbert317]

Awesome that is so helpful. Will there be a place when using Turbotax to do my taxes that shows me where to include all that info? 

[Bsch4477]

Yes. The programers will work it out.