For hobby and non-business (casual) sales of personal items reported on a 1099-K:
Report the income and then enter an offsetting "expense" for the costs of the goods you sold (which would include amounts paid to another party for those goods)
To report the income:
If the 1099-K reports income that is not related to your main job or self-employment, enter the information as follows:
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Enter the 1099-K in the Other Reportable Income interview under Income and Expenses > Less Common Income > Miscellaneous Income > Other Reportable Income > Other Taxable income
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Or enter "other reportable income" in the Search Box and Select "Jump to other reportable income). These are NOT wages.
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For "Description", enter "1099-K Receipts"
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Enter the amount.
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The income will be reported on line 8 of Form 1040 of your return (Other income from Schedule 1, Line 9).
To enter the adjustment:
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Enter the costs of the items you sold in the Other Reportable Income interview also, as a negative number, under Income and Expenses > Less Common Income > Miscellaneous Income > Other Reportable Income >Other Taxable income
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Or enter "other reportable income" in the Search Box and Select "Jump to other reportable income). These are NOT wages.
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For "Description", enter "1099-K Costs"
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Enter the amount as a negative number ("-$ XXXX).
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The offsetting amount will be reported on line 8 of Form 1040 of your return (Other income from Schedule 1, Line 9).
