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?

[rumace]

This information needs to be updated.  I just followed the instructions shown immediately below for Option 2, #5.   There is no ability to  "enter an adjustment to reflect the cost of these items as an offsetting, negative amount up to the amount of the income".  

[ThomasM125]

To enter the negative adjustment, follow these instructions:

Go to the Income and Expenses section of TurboTax

 - Choose  Less Common Income

 - Choose Miscellaneous Income, 1099-A, 1099-C

 - Choose Other reportable Income

 - Enter a description and the amount of your adjustment as a negative number

@rumace

[taxer96]

I received a 1099-K from an online marketplace for $9500 in gross sales of personal property (various things I've had for anywhere from 1-15 years).  My cost basis (original purchase price, shipping, fees, etc.) is $5500, so my gains are $4000.

I don't believe I am a business, so should I use Option 2: reporting it via Other Miscellaneous Income to report these gains?  My entries would appear as:

Form 1099-K Marketplace Name Personal Property Sales: $9500

Form 1099-K Marketplace Name Cost of Personal Property: —$5500

Alternatively, within the Forms, under Schedule 1, Line 8, item 16a is Taxable Income from Form 1099-K. Upon opening the worksheet, it will calculate the gain and enter that final number.  However, I'm concerned that the reported gross number on the 1099-K and my adjustment won't be on the return to show how I came up with that number.  Is this still an acceptable method?

[LeonardS]

To enter your PayPay 1099-K amount and deduct the cost of  goods sold, your basis, follow these steps:

1. Sign in to TurboTax and open (continue) your return
2. Select Federal from the left menu
3. In Wages & Income (Income & Expenses if you’re using TurboTax Self-Employed), scroll down to Less Common Income and select Show more
4. Select Start next to Miscellaneous Income, 1099-A, 1099-C
5. Select Start next to Hobby income and expenses
6. Answer Yes to Do you have hobby income or expenses?
7. On the next screen, enter the Total income reported on your Form 1099-K and select Continue. Don't enter any expenses.
8. Select Done on Love your dedication—here’s what we’ve got for your hobby
9. To deduct the cost of the items sold: while still in Miscellaneous Income, select Start next to Other reportable income
10. Select Yes on Any Other Taxable Income?
11. On the next screen, enter Form 1099-K in the Description field. Enter the total cost of the items sold in the Amount field as a negative number. Note that the amount can’t exceed the income reported on Form 1099-K.

This TurboTax Link How do I report a 1099-K if I don’t own a business?

[Christine99]

I received a refund from a merchant this year via Paypal and it's over $1k. Paypal categorized it as payments for goods and services and will send me a 1099-k for it. 

In this case, how should I enter the 1099-k when filing tax in 2023?

Thanks in advance, 

[barkinglobster]

Can someone with TurboTax update this thread with instructions for reporting a 1099-K using the latest (2023) version of TurboTax? I'm trying to report  a 1099-K I received from Paypal, and would like to know precisely how to enter the income and costs involved with selling personal items. Thanks

[fanfare]

It's not Schedule C it's Schedule D / Form 8949

Loss on Personal Items is not deductible so you have to enter an adjustment to cancel the loss,

or report the cost same as the proceeds.

Gain on Personal Items is a taxable gain.

Use Box Category C/F since you don't have a 1099-B

The proceeds subtotals should add up to your 1099-K

If you use the adjustment (recommended) the adjustment code (Col f) is "L"

@barkinglobster 

[barkinglobster]

I guess I should start a new thread so I can get an answer specific to my request

[fanfare]

@barkinglobster 

I added some additional detail on my answer above.

[pjcupples]

I use Schedule C. I don't have a company so just enter under my name. I have eBay sales - I enter the 1099k amount as income. Enter shipping, fees, and other non-inventory expenses - if there aren't relevant categories, enter as other. you can't show a loss, but you can net 0 - the difference between revenue and the expenses is your cost of goods sold. Your situation may need tweaking, but hopefully this helps.

[stantonporsche]

can you give me a screen shot example of how to do this 

Other Taxable Income

Description:  1099-k sale of personal items : 20,000

 add another income item:

Description: 1099-K sale of person items :  -20,000

total miscellaneous taxable income: 0

No explanation as to what items were sold, when you purchased, when you sold

is this what you mean?

[pjcupples]

Note - this is a very simplified example of an eBay sale. It is based on the premise that your inventory/purchases cost more than their sale price. For example: I purchased a sweater for $100 last year. This year I sold that sweater for $30 on eBay. I'm not allowed to show a loss, but I can show a net profit of 0.

If the sales price is greater than the purchase price, you need to use the actual cost of purchases and show a profit rather than backing into the cost.

		Sched C Line
1099k eBay Sales	$10,000.00	1
shipping	($100.00)	48
fees	($100.00)	48
other expense	($50.00)	48
gross income	$9,750.00
COGS	($9,750.00)	4
Net Profit	$0.00
Beginning Inventory	$0.00	35
Purchases	$9,750.00	36
Ending Inventory	$0.00	41
COGS	$9,750.00	42

[stantonporsche]

  I got 1099-K of 20,000 of sales, multiple items about 200.  I took a loss on all 200 items. 

Where on Turbotax Deluxe do you enter these details?  there is a box to enter amount for 1099-K but there is not area  to input the details such as description item, date purchased, date sold, cost basis

I believe turbotax premier and higher allows for this but nowhere is there a place in deluxe version. 

I was told that you can go to less common income section, miscellaneous income 

input description: 1099-K personal item sales, amount of : 20,000

then add another income item:  1099-K personal item sales, amount of :   -20,000

total miscellaneous income: 0    

hence no tax is generated.   however, i believe this might create an audit because there is no information on the items you sold.    

there is one area when researching this on internet:  information needs to be generated on form 8949

only way I can do this on deluxe is through the stocks, bonds section

last question: do I need to list out all 200 items I sold? 

[pjcupples]

I use the home and business version so can't help with the deluxe version. You don't have to list the sales individually, just the totals. But make sure you keep copies of the eBay statements so you have backup in case you are audited.

[stantonporsche]

IRS would want details on the items you sold however

include dates of purchase and sale, right?

this is what happens step by step in Premier turbo tax but somehow not available in Deluxe

the miscellaneous portion she mentioned in Deluxe might pose questions from the IRS and you might definitely get audited since no details provided