How do I report personal items sold at a loss from my 1099-K on Schedule 1?

Menu Path: Income > Business / Rental Income > 1099-K Income

If you have a Form 1099-K that includes amounts for personal items that were sold at a loss, you can report this in the Form 1099-K section of the software.

Follow these steps:

1. Start in the 1099-K Income section. Menu Path: Income > Business / Rental Income > 1099-K Income
2. Answer questions about where the Form 1099-K came from.
3. Answer Yes to the question asking if you have personal transactions.
4. Answer Yes to the question asking if any of your 1099-K personal transactions were from the sale of a personal item sold for a loss.
5. Enter the total amount of payments received from the sale of personal property at a loss that was reported on your 1099-Ks.

That amount will then be included at the top of Schedule 1. This will include the correct 1099-K amounts on your return while letting the IRS know what amount of your 1099-K income is from personal losses and isn't included as income.