Smart check shows error in 1099-B

[greeny_]

Hello,

I received a 1099-K from eBay for my sold items. I entered the amount in the respective form in TurboTax. All items I sold were sold with a loss (used old items). When I run the Smart Check I get an error in the 1099-B Worksheet showing the Payment(s) amount from linked Form 1099-k in red.

How can I solve this problem?

[MarilynG1]

For reporting Form 1009-K for personal items sold not associated with a trade or business, you can report this as Miscellaneous income.

• From the left menu, go to Federal and select the first tab, Wages & Income
• Add more income by scrolling down to the last option, Less Common Income, and Show more
• Scroll down to the last option, Miscellaneous Income, 1099-A, 1099-C and Start
• Choose the last option, Other reportable income and Start and Yes
• Enter the applicable description and amount and Continue
  • First, enter Form 1099-K as received. It is essential that the full amount be entered.
  • Next, enter an adjustment as a negative number to reflect the cost of these items and the sales expenses.

Click this link for more info on Reporting Personal Items Sold at a Loss. 

[greeny_]

Thank you for your quick answer. It helped me to solve the error, but now I have another issue.

When I enter the 2 entries as you described, the Federal amount stays the same as expected, but the NJ refund decreases. Should the NJ Refund not stay the same as well?

As I said, I sold a couple of used items privately on ebay for a loss. 

[JamesG1]

You may be referring to IRS form 1099-K reported as Other Income on line 8 of the Federal 1040 tax return.

If the other income reversal entry does not flow from the Federal tax return to the NJ tax return, you may be able to make the reversal entry on the NJ tax return at the screen Other Non-Wage Income.

However, that entry may make your New Jersey tax return not eligible for electronic filing.  We have seen this message.

TurboTax software has additional entries at the bottom of the screen Let's get the info from your 1099-K which may be helpful to you.

Reporting the sales as personal item sales reports the income and expense of sale on IRS form 8494 / Schedule D Capital Gain and Loss. However, capital loss for a personal item sale reports $0 capital gain on line 7 of the Federal 1040 tax return.

To report Personal item sales, 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.

@greeny_ 

[greeny_]

Thank you for you help. That worked.