Should I be concerned that line 1h of my 1040 shows 0, despite income reported on a 1099-K? Selected all items at loss or no gain in TT (which is true).

You should not be concerned. The personal items sold at a loss will appear on your Schedule 1, Part I as Additional Income but will not appear as taxable income on your Form 1040.

 

This is all fine and good, but are you aware that if the box at the top of Schedule 1 is the only numerical entry on Schedule 1, then Schedule will NOT be included in your return?  Might confuse the IRS when they try to match the 1099-K amount and the number is nowhere to be found in your return.

 

I complained about this a few weeks ago and apparently, as of TT Basic Windows Version [phone number removed], it still functions that way.

 

The logic appears to be:  if there are any entries on Schedule 1, lines 1 through 26, include Schedule 1; otherwise do not include Schedule 1.

 

The logic should be: if there are any entries on Schedule 1 OR if the 1099-K block at the top has an entry, include Schedule 1; otherwise do not include Schedule 1.

 

The temporary fix that I discovered is simply to go to line 8z and enter $0.  Then TT will include Schedule 1.

 

Or am I completely out to lunch on this issue?

I am having the exact same issue as you.  Have you received any additional guidance for this issue?  I received a 1099-K, reported personal item sales all at a loss, but $0 of additional income showing on Line 1h of 1040 and no Schedule 1 automatically generating through TT.  Spoke with a TT rep via phone and was told that TT has a record of me reporting the sales should anything ever come up, but I don’t love the idea of waiting to be contacted by the IRS to confirm that I appropriately reported these sales.

No additional guidance per se, but I got same response from TT.  So I just made a miscellaneous income entry of $0, and that ended up including the Schedule 1 with my return, with the appropriate 1099-K info shown at top of the Schedule.

 

And for what it is worth, my return was approved and refund already received.  All in less than 14 days…

Yes, I don't quite understand TT's attitude that we will let the IRS catch the mistake.  It would be so much simpler for TT to include Schedule 1 if there is ANY number on the Schedule, not just numbers on lines 1-26.

 

I ended up doing what I originally discovered (a few posts back):  if TT will only include Schedule 1 if there are numbers among lines 1-26, I'll give them numbers.  On line 8z, for the description, I was simply going to say "Misc," but I figured I would reinforce the fact that I had a 1099-K for personal items all at a loss (which was entered in the block at the top of Schedule 1), so I wrote "1099-K Personal Item Gains" for the description with the associated numerical entry of $0.

 

I e-filed last week.  My return was accepted in about 8 minutes.  Three days later, I saw the published  transcripts of my return on my IRS online account, so I assume that indicates the IRS has somewhat processed it already.  And interestingly enough, on the IRS transcript of my return, I see a line that says "F1099 K   $0.00."  I don't recall seeing a 1099-K entry on transcripts in previous years, so maybe the IRS is getting serious about these 1099-K's now.

 

The IRS website What to do with Form 1099-K states:

 

If the gross payment amount is incorrect

Report the amount from your incorrect Form 1099-K in the entry space at the top of Schedule 1 (Form 1040), Additional Income and Adjustments to Income

 

You are correct.  If you are concerned about not viewing Schedule 1, you are able to add an entry to Schedule 1 and force it to print.

 

@wa1fhy 

@Megaleg07