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How do I report a 1099-K if I don’t own a business?

SOLVEDby TurboTax238Updated April 05, 2022

Form 1099-K is sent to anyone who receives more than $20,000 in sales and completes more than 200 individual transactions through a payment processor, including for items sold on eBay or other online retailers like Etsy or Amazon. Even if you’re not a business owner, you’ll still need to report any income that’s listed on a Form 1099-K. 

Here’s how to enter income and allowable deductions from Form 1099-K in TurboTax if you’re not a business owner:

  1. Sign in to TurboTax and open (continue) your return
  2. Select Federal from the left menu
  3. In Wages & Income (Income & Expenses if you’re using TurboTax Self-Employed), scroll down to Less Common Income and select Show more
  4. Select Start next to Miscellaneous Income, 1099-A, 1099-C
  5. Select Start next to Hobby income and expenses
  6. Answer Yes to Do you have hobby income or expenses?
  7. On the next screen, enter the Total income reported on your Form 1099-K and select Continue. Don't enter any expenses.
  8. Select Done on Love your dedication—here’s what we’ve got for your hobby
  9. To deduct the cost of the items sold: while still in Miscellaneous Income, select Start next to Other reportable income
  10. Select Yes on Any Other Taxable Income?
  11. On the next screen, enter Form 1099-K in the Description field. Enter the total cost of the items sold in the Amount field as a negative number. Note that the amount can’t exceed the income reported on Form 1099-K.
  1. Open your TurboTax software and continue your return
  2. Select the Federal Taxes tab (this is the Personal tab in TurboTax Home and Business)
  3. In the Wages & Income section, select I’ll choose what I work on
  4. Scroll down to Less Common Income. Select Start next to Miscellaneous Income, 1099-A, 1099-C
  5. Select Start next to Hobby income and expenses
  6. Answer Yes on Do you have hobby income or expenses?
  7. On the next screen, enter the Total income reported on your Form 1099-K. Don't enter any expenses.
  8. Select Done
  9. To deduct the cost of items sold: while still in Miscellaneous Income, select Start next to Other reportable income
  10. Answer Yes on Any Other Taxable Income?
  11. Enter Form 1099-K in the Description field. Enter the total cost of the items sold in the Amount field as a negative number. Note that the amount can’t exceed the income reported on Form 1099-K.

Here are some useful tips:

  • If you’re selling something that could be considered a collectible item, don’t follow these instructions. Instead, you’ll need to report it as investment income in TurboTax. 
  • If you're not a business owner, the only deduction you can take for this income is the original price you paid for the goods you sold (this is the negative number you enter in Step 11). You can't deduct any other expenses or claim a loss on your 1099-K income.
  • Don’t ignore a Form 1099-K just because you aren’t a business owner. Disregarding a tax form may result in a delay in processing your return and an adjustment to your taxes.
  • You need to report all earned income to the IRS. Even if you didn't receive a 1099-K, you still have to report any cash, personal checks, or credit card payments related to your hobby. Do this by following the steps above.

If you are a business owner and need to enter income from a 1099-K in TurboTax, see these instructions.

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