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).

[jonshipman]

Or should I make sure that the reported 1099-K income shows on my 1040, and make an offsetting entry elsewhere such as miscellaneous income?

[ThomasM125]

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.

[wa1fhy]

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?

[Megaleg07]

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.

[jonshipman]

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…

[wa1fhy]

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.

[JamesG1]

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