Form 1099-K is sent to anyone who has more than 200 transactions and more than $20,000 in payments processed for goods and services from all payment card transactions and third-party payment services (like eBay, Etsy, and PayPal).
You need to report all earned income to the IRS. If you are not a business owner or a hobbyist, follow these steps to enter your 1099-K:
- Sign in to TurboTax and open your return
- Select Search and enter 1099-k
- Select Jump to 1099-k
- Select Yes on the Did you get a 1099-K? screen
- Select Hobby, Personal item sales, Personal Property Rental, or Other, and then select Continue
- Enter your 1099-K information
If you are using TurboTax Online, check the box under 1a and enter the amount not subject to tax (personal items you sold at a loss, gifts, and reimbursements).
If you are using TurboTax Desktop:
- If you selected Hobby income or Personal Property Rental, you are done
- If you selected Personal item sales, you will need to choose if everything was sold at a loss or if some items were sold at a loss (you will then need to enter the gain)
- If you selected Other, you will see a summary screen