How to report 1099-K (ebay) when everything was sold at a loss
I can't quite got to Schedule 1. The prompts kept taking me to schedule c or to the page where I have to pick an income; and I am back in the 1099K page. Any step-by-step guidance on how I should file my 1099-K from ebay.
Answers
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Don't use the Business Income path. Instead, navigate through Income → Common Income → Investments and Savings → Personal Items (1099-K). Click on the question mark and it will ask you if you sold personal items at a loss. This should correctly flow to Schedule 1.
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Hello,
The most direct way if you had personal items sold as a loss, would be to go to Income -> Business Income -> 1099-K Income.
Next choose who gave you the form and click on No to the question “did you receive a 1099-K that’s incorrect?”
The next page should ask you if your 1099-K was from personal transactions. Say Yes and go to the next page. There, you should see a question asking if any of your 1099-K personal transactions were the sale of a personal item sold for a loss. If you say Yes, you should see a space for you to enter the amount that you need to exclude from your income.
It should now appear on the top of your Schedule 1.
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Is there another place to enter the entire amount that is on the 1099k? Or will the amount that was sold at a loss from personal items and the amount from investments and savings (items sold for a gain) be enough. These two amounts should add up to what is on the 1099k?
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Yes, the two amounts that were entered for the proceeds of the loss and for the gain should add up to the total that your 1099-K is reporting. The 1099-K itself isn't transmitted to the IRS on your return, so as long as you have included the total proceeds with the information being reported on your tax return, you should be good to go.
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