For purposes of the 1099-K, you are self-employed. If you were an employee, they would send you a W-2.
1. Go to the section on Federal Taxes. Let's get the biggest refund. Continue.
2. I'll chose what to work on. Pick 1099-MISC & Other Common Income, go to 1099-K.
3. There are a couple of ways to enter your 1099-K. The amount in 1a, is your GROSS INCOME. This is what
they paid you, including any fees they took out. So, for example, let's say you are a Door Dash delivery guy.
The amount in 1a, includes all the $$ you were paid for the delivery, any tips, toll fees you paid, busy time
bonuses, etc. Then they should have sent you something showing the fees they took out, and what they put into your bank account. Enter the $$ from 1a. DO NOT subtract your fees yet. It will ask you if this is self-employment income, say yes, and answer the questions as they come up. It will ask if you made any
other $$ not included on 1099-K, related to this business. Then it will ask about any expenses you had. It will give you a list of categories. For a delivery driver, you will be able to take expenses such as, cell phone charges, for the business portion you used, mileage for business purposes, if you have a mileage log, any hot food bag for delivering food, a cell phone holder for your car, and then there will be no more categories, don't worry, just keep clicking, you will come to a screen that asks for any other expenses, and you can type in Door Dash fees $$. If your money is put onto a prepaid card, you can deduct any fees for withdrawing your $$.
4. Then it will ask about car expenses, and any other assets for this business, (that need to be depreciated).
If you choose this, you need to know about what and how to depreciate, or you need to go to someone
who does know. Depreciation is an evil cow!!! LOL!
5. The other way to enter the 1099-K is thru the self-employed, business section.
6. I could offer more help if I knew what you were doing to be sent this 1099-K. There are several other items that could be an expense. depending on what you are doing. I hope this helps you, I will keep checking back, incase you need more help.
Good luck.
Marilyn
