Online 1099-K Link Issue

[3Do0oXTT]

I received a 1099-K from eBay for selling personal used items. I added Form 1099-K under Other Common Income as instructed in other posts. I selected Personal item sales and All items were sold at a loss or had no gain. It works well until the Federal Review session. It keeps showing me the From 1099-K needs review in the screenshot. I tried to double-click the blank but nothing happened. 

It seems TurboTax is trying to link this 1099-K to Schedule C. But for my case, I believe I don't need Schedule C and the 1099-K should proceed as selling the capital asset, which is supposed to appear on Schedule D. Did I miss anything? Or should I try the desktop version which provides more flexibility to work on the form directly?

[ErnieS0]

Try deleting and typing in your 1099-K yourself. If you choose Personal item sales and "All items were sold at a loss or had no gain," TurboTax will report your sales on Schedule 1, line 8z.

[3Do0oXTT]

Just tried to manually input 1099-K but the review issue is still there. 

[KrisD15]

When you enter the 1099-K, and select "Personal Item sales" the TurboTax program will link it to Schedule D. 

After entering the 1099-K and selecting "All items were sold at a loss or had no gain" 

finish the "Other Common Income" interview. 

NEXT

Go to Income

Investment Income

Stocks, Mutual Funds, Other

Start or update

The 1099-K you entered should be listed there, click Edit for that 1099-K

Continue through the screen "Confirm your financial info"

Click Edit again for that 1099-K which should be listed

Choose "Summary" if applicable

Enter the amount reported on the 1099-K as BOTH Total Proceeds and Total cost basis 

Select Long term in the drop-down if all items were held for more than one year

(if some items were held for one year or less, you will need to split the entries, although since there was no gain, and loss is not allowed, it would make no difference)

Click Continue 

This should eliminate the error. 

[3Do0oXTT]

Just tried to manually add 1099-K again but the problem is still there. However, the correct number shows in Schedule 1, line 8z. 

[3Do0oXTT]

I didn't see these options on the website. Seems the online version is different from the desktop version. Do you have any idea how it works for the online version?

[MarilynG1]

This works in TurboTax Online.  Type '1099-K' in the Search area, then click on 'Jump to 1099-k'.

If you see your 1099-K on the Summary page, Edit it.  If not, you will see 'Did you get a 1099-K?'.

On the next screen, choose 'Type it in Myself'.

On the next screen, choose Personal Item Sales.  

Continue, and enter info from your 1099-K.   Be sure to check the box indicating you sold 'Personal Items'.

If you had a loss (or no gain) on your sales, on the next screen indicate that.   

[3Do0oXTT]

I have no problem adding the 1099-K form following these steps. However, it can't pass the federal review section. It keeps asking me to link the 1099-K to other forms while the UI doesn't work at all. I feel like this is a software bug and it has been reported many times.

[JamesG1]

Are you simply posting income for personal item sales, or 

Are you posting income for personal item sales and wanting to reverse the entry for some reason?

Using the screen below leads you to posting the personal item sales on IRS form 8949 / Schedule D Capital Gains and Losses.

This method is following the instructions from an IRS revision on January 27, 2023.

I also do not click This amount in box 1a is too high or includes some personal transactions on the screen Let's get the info from your 1099-K.

I also do not click either link on the screen Personal Item Sales.

To report Personal item sales, I follow these directions.

• Down the left side of the screen, click Federal.
• Down the left side of the screen, click Wages & Income.
• Click Show more to the right of Other Common Income.
• Under Your income and expenses, click the Edit/Add button to the right of Form 1099-K.
• At the screen Did you get a 1099-K? click Yes.
• At the screen How would you like to enter your 1099-K? click Type it in myself.  Click Continue.
• At the screen Choose which type of income your 1099-K is for, select the button for Personal item sales.  Click Continue.
• At the screen Let’s get the info from your 1099-K, enter the information.      Click Continue.
• At the screen Personal Item Sales, you are told that further information will need to be entered.  Learn More provides detailed information for the next steps.  Click Continue.
• At the screen Your 1099-K summary, notice that the income relates to ‘Sale of Personal Items’.  Click Done.
• Under Your income and expenses, click the Edit/Add button to the right of Investments and Savings (1099-B, 1099-K….)
• At this screen, you will be asked to Review the Personal item sales (1099-K).

At the screen Now, enter one sale…., answer questions about the personal item sale.  Click Continue.

The entry will be reported:

• on Schedule D of the Federal 1040 tax return, and 
• on line 7 of the Federal 1040 tax return.

Capital loss for a personal item sale reports $0 capital gain on line 7 of the Federal 1040 tax return.

@3Do0oXTT 

[RPaxton516]

I just got off the phone with a TurboTax agent who got me through to completion. The key is to not use the personal sales radio button (because there's no way to get to the finish line using that route) - instead mark self-employed. Continue through with that, and then I think we entered another self-employment form under wages and income, but now that I've actually completed everything, I can't go back to see what form I entered. But I do know that there's a form where it asks you for a business code and you use 999999. (six 9's).

I hope this helps anyone, because I definitely got to the finish line using this route. Maybe if someone finds this and successfully completes it as well, they can fill in the blanks I missed.

Good luck!

[nparadiso]

I entered my 1099-K info for the sale of personal items under the 1099-K section.  Then when I go to the Interest section, the 1099-K I entered is not showing up.  I tried to manually add it but it won't connect to the 1099-K form.  Any suggestions?

[KrisD15]

There was a time when the 1099-K was entered, then an adjustment for it was made in the "Investments section".

Now, if you enter the 1099-K for personal item sales, did not realize a gain on any of the items, you only need to enter it once. 

If you DID make a "profit" or "gain" on any items, (it will not be INTEREST) it would be Capital Gains and the 1099-K should be "linked" and found under-

Investment Income

"Stocks, Mutual Funds, Bonds, Other"

IF NO GAIN, Enter the 1099-k under

Income

Other Common Income

Income from Form 1099-K

Start 

"Did you get a 1099-K?" YES

SELECT PERSONAL ITEM SALES on the "Choose which type of income your 1099-K is for" screen

Continue

Enter the information from the 1099-K

Continue

Select "ALL ITEMS WERE SOLD AT A LOSS OR HAD NO GAIN" on the "Personal Item Sales" screen

Continue and Done

That's all you need to do, there is no income and no loss (personal item sales cannot generate a loss) 

 

[smallgreenfrogs]

This does not fix the problem. I am having the same issue. 1099K is flagged in final review. I have done everything as recommended in your directions. Doesn't work. 1099k also doesn't link to investment savings page, as others have suggested. I'm incredibly frustrated.

[JamesG1]

Are you reporting IRS form 1099-K and personal items?  Or something else?

If you are only reporting the sale of personal items, it is possible to bypass the IRS form 1099-K entry and post the sales directly to an IRS form 8949 / IRS form 1099-B.

However, you would have to report the IRS form 1099-B Sales Proceeds equal to the IRS form 1099-K box 1a so that the IRS knows that you are acknowledging and reporting the IRS form 1099-K that was issued.  Even then, you would want to retain all sales records with your tax return information should a tax authority has a question at a later time.

To enter the form manually In TurboTax Premium Online, follow these steps:

1. Down the left side of the screen, click Federal.
2. Down the left side of the screen, click Wages & Income.
3. Click the down arrow to the right of Investments and Savings.
4. Click to the right of Stocks, Cryptocurrency, Mutual Funds, Bonds, Other (1099-B).
5. Click Add investments.
6. On the Let's import your tax info screen, select Enter a different way.
7. On the OK, let's start with one investment type screen, select Stocks, Bonds, Mutual Funds, then Continue.
8. At the screen Which bank or brokerage, enter the information.  Click Continue.
9. Do these sales include any employee stock, enter No.
10. Do you have more than three sales, enter Yes.
11. Do these sales include any other types of investments, enter No.
12. Did you buy every investment listed, enter Yes.  Continue.
13. On the screen Now, choose how to enter your sales, select One by One.  Select Continue.
14. At the screen Look for your sales on your 1099-B, select Continue.
15. Enter the IRS form 1099-B information.  Select Continue.
16. Select Add another sale to add another transaction.

@smallgreenfrogs 

[xingfan1228]

I've had the exact same issue and it is indeed a TurboTax software bug. I have found a solution. 

Click "Forms" on the upper right of the screen. Then select "Form 1099-K Wks (ebay)". Scroll down to the bottom that says "1099-K Reconcilliation". In 2b, "Payments for personal property sold at a loss", the box is checked, BUT THE VALUE IS NOT ENTERED!!! Enter the same value as "1" and then "3" should become 0.

It will then not ask you to link schedule C. 

TurboTax, please fix this issue!!