How do I report a 1099-K if I'm not a business owner or hobbyist?

SOLVED•by TurboTax•372•Updated March 02, 2023

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

What if I sold some items at a loss?

If you selected Other or Personal item sales with some loss, you will need to complete Schedule D.

Select Search and enter 1099-b
Select Jump to 1099-b
Select the issuer of your 1099-K and select Continue
Select Add
On the Tell us about this sale screen, enter the transaction information
Select any adjustments that apply:

Fees or selling expenses (for example, if you sold your concert tickets on an online platform with fees)
Loss is not deductible due to personal-use property
Adjustment is required (gifts and reimbursements can be entered as a negative)

Select Add Transactions to enter additional transactions or select Done if you are finished

What if I sold a collectible item?

If you sold something that could be considered a collectible item, report it as either business income or personal item sales.

What if I let other people rent my items?

If you rent your personal items, like your bike, purse, or golf clubs to others, report it as either business income or personal property rental income.

Related Information:

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