Where do i file the 1099-k in turbotax?

[david9726]

I received a 1099-k from paypal but i am unsure where to enter it's info. I have asked turbotax but they have not been much help they have told me to file it as a hobby or in Schedule C  so i am wondering what others are doing.

BTW i am just a individual on ebay that sells once in a while to help pay for other items such as i sold a PS4 to help pay for a PS5 so i do not see it as income but i will file it, i only sold $2000 worth of items.

Thanks for the help.

[mam98031]

---

@rfmtm wrote:

Yes, technically you should use Schedule "D", but the IRS and TurboTax note it is not a problem to just report it as Misc/Other Income, so why not keep it simple, if you can.  Bottom line is, as long as you have accounted for the income, the IRS will be happy.

---

IDK, maybe it is because INCOME is not reported on a 1099K for internet sellers.

[rfmtm]

A 1099 technically reports gross total payments processed for the recipient.   Still the word "income" is generally used to describe it.

[mam98031]

---

@rfmtm wrote:

A 1099 technically reports gross total payments processed for the recipient.   Still the word "income" is generally used to describe it.

---

It doesn't say that on the form / 1099K nor does IRS refer to it as being Gross Income.  The number on a 1099K can be miles away from what Gross Income is even before taking expenses out of it.

https://smallbusiness.chron.com/difference-between-income-gross-receipts-23453.html

[rfmtm]

"When I use a word," Humpty Dumpty said, in rather a scornful tone, "it means just what I choose it to mean ~ neither more nor less."

"The question is," said Alice, "whether you can make words mean so many different things."

"The question is," said Humpty Dumpty, "which is to be master ~ that is all."

from Through the Looking Glass by Lewis Carroll

[mam98031]

---

@rfmtm wrote:

"When I use a word," Humpty Dumpty said, in rather a scornful tone, "it means just what I choose it to mean ~ neither more nor less."

"The question is," said Alice, "whether you can make words mean so many different things."

"The question is," said Humpty Dumpty, "which is to be master ~ that is all."

from Through the Looking Glass by Lewis Carroll

---

I've been having a civil conversation, sorry this became too much for you.  We will stop the discussion here or at least I will.

[rfmtm]

LOL, no apologies necessary,  just thought you'd enjoy one of my favorite quotes.

[skatefool]

---

@rfmtm wrote:

LOL, no apologies necessary,  just thought you'd enjoy one of my favorite quotes.

---

psst:  dude - some of the board police have a sense of humor thinner than a President's hair...

[mam98031]

---

@rfmtm wrote:

LOL, no apologies necessary,  just thought you'd enjoy one of my favorite quotes.

---

Good as I did not intend to apologize for anything.  I've done nothing to warrant that.  I do extend them when necessary, but this isn't one of those situations.

[mam98031]

---

@skatefool wrote:

---

@rfmtm wrote:

LOL, no apologies necessary,  just thought you'd enjoy one of my favorite quotes.

---

psst:  dude - some of the board police have a sense of humor thinner than a President's hair...

---

It is doubtful that the Moderators would get involved as @rfmtm did not break one of the Community rules that I'm aware of.

[rfmtm]

No problem, I guess I misinterpreted your statement "sorry this became too much for you", as my reply was just in fun.   Anyway, hopefully this discussion has at least pointed out where to put the information from ebay's 1099K no matter what you call it. 

[700silverv]

Depending on what you are doing a 1099k could definitely be gross income, it may not say it  but the IRS will see it that way.

[mam98031]

---

@700silverv wrote:

Depending on what you are doing a 1099k could definitely be gross income, it may not say it  but the IRS will see it that way.

---

Well technically that is true for other times of reasons for using a Money Processor on the internet other than internet sales.  For example a landlord that has their rent paid to them via a Money Processor.

But for everyone selling here or on any other internet site it would not be the Gross Income.  So while technically correct, that isn't going to affect any Ebay seller, so it just is info that can add to possibly causing confusion.

[marcpaulgallery]

Per TurboTax you have two options.

For reporting Form 1009-K for personal items sold not associated with a trade or business, you have two options:

* Option 1 in TurboTax Premier or higher: reporting Form 1099-K as investment income

1. Go to the search box and enter Investment Sales
2. Select Jump to Investment Sales
3. Select Other at the next screen, OK, what type of investments did you sell? and click Continue
4. At Tell us more about this sale, enter in the name, such as Form 1099-K eBay Personal Property Sales and the Payer's EIN and click Continue
5. At Now we'll walk you through entering your sale details, under the first dropdown menu, What type of investment did you sell? Select Personal Items
6. Answer How did you receive this investment with an option from the dropdown menu.
7. Enter the Description. If you are uncertain what date you purchased the goods, select Something other than a date so that TurboTax will enter Various
8. Next, enter your Sale Proceeds and an equal amount for the Total Amount Paid and click Continue. The description for the cost should include Cost of Personal Property
9. Select None of these apply at Let us know if any of these situations apply to this sale and Continue
10. Continue through the rest of the prompts 
11. Select Add another sale to add the next Form received

* Option 2 in TurboTax Deluxe or higher: reporting it via Other Miscellaneous Income is acceptable to the IRS.

1. From the left menu, go to Federal and select the first tab, Wages & Income
2. Add more income by scrolling down to the last option, Less Common Income, and Show more
3. Scroll down to the last option, Miscellaneous Income, 1099-A, 1099-C and Start
4. Choose the last option, Other reportable income and Start and Yes
5. Enter the applicable description and amount and Continue
* First, enter Form 1099-K as received. It is essential that the full amount be entered.
* For a description, include Form 1099-K and Personal Property Sales
* Next, in other reportable income also,  enter an adjustment to reflect the cost of these items as an offsetting, negative amount up to the amount of the income.
* For the cost description, include Form 1099-K and Cost of Personal Property 
* In other words, if the goods cost you $100 and Form 1099-K was for $10 in sales, the maximum cost allowable would be $10.

[mrnavi89]

On Form 1099k, Do I enter what's on 1a. Gross/ammount of payment card/ third party network transactions as the income on Turbotax?  or the Federal Income Tax witheld?

[mrnavi89]

Where you able to find out? Cause I'm also confused on my Form 1099k, Do I enter the 1a. Gross/ammount of payment card/ third party network transactions as the income on Turbotax? or the Federal Income Tax witheld?