Where do I enter my Form 1099-K?
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Form 1099-K is a form that reports credit and debit card sales revenue for your business. Form 1099-K can be sent to anyone who uses payment apps or online marketplaces to accept payments for selling goods or providing services. This includes people with side hustles, small businesses, crafters and other sole proprietors.
However, Form 1099-K may also be issued to casual sellers who sold personal items such as clothing, furniture and other household items that they paid more than they sold it for.
The IRS requires banks, credit card processing companies, and third-party networks, such as PayPal or Ebay, to send the Form 1099-K to individuals and businesses to report credit and debit card sales they have processed.
Reporting a 1099-K for Personal Sales
If your 1099-K reports the sale of a personal item that you sold for a gain, you will enter that in the Investments and Savings section of the software. Selling personal items at a loss is not taxable income.
Reporting a 1099-K for Business Income
You just need to report the sales revenue as part of your business income. Most businesses are already tracking revenue and expenses and don't need to report the revenue shown on the Form 1099-K separately.
For example, if you track all your income and expenses on QuickBooks or some other accounting software and you have $40,000 in revenue for your business for the year, then that is what you would report on your tax return as sales from your business no matter what the Form 1099-K says.
If you've kept good track of your sales on your accounting software, then all your sales including your credit and debit card sales will already be on your books. However, if you haven't kept good track of your revenue, you will need to make sure the sales shown on the Form 1099-K are included in your sales you are reporting on your tax return.
For example, if your books say that you have $40,000 in sales for the year but you receive a Form 1099-K saying you have processed $50,000 in credit card sales, then the IRS will wonder what is going on if you don't report at least $50,000 in sales for your business on your tax return.
Federal Income Tax Withheld on Form 1099-K
If you have federal income tax withheld in Box 4 of your Form 1099-K, you can enter that amount on the Extension and Other Tax Payments screen in the Miscellaneous Forms and Topics section.
Were you an Uber or Lyft driver?
Understanding your Form 1099-K
Menu Path: Income > Business / Rental Income > Business Income (Schedule C)
Menu Path: Income > Business / Rental Income > Rental Income (Schedule E)
Menu Path: Income > Business / Rental Income > Farm Income (Schedule F)
Form 1099-K is a form that reports credit and debit card sales revenue for your business. Form 1099-K can be sent to anyone who uses payment apps or online marketplaces to accept payments for selling goods or providing services. This includes people with side hustles, small businesses, crafters and other sole proprietors.
However, Form 1099-K may also be issued to casual sellers who sold personal items such as clothing, furniture and other household items that they paid more than they sold it for.
The IRS requires banks, credit card processing companies, and third-party networks, such as PayPal or Ebay, to send the Form 1099-K to individuals and businesses to report credit and debit card sales they have processed.
Reporting a 1099-K for Personal Sales
If your 1099-K reports the sale of a personal item that you sold for a gain, you will enter that in the Investments and Savings section of the software. Selling personal items at a loss is not taxable income.
Reporting a 1099-K for Business Income
You just need to report the sales revenue as part of your business income. Most businesses are already tracking revenue and expenses and don't need to report the revenue shown on the Form 1099-K separately.
For example, if you track all your income and expenses on QuickBooks or some other accounting software and you have $40,000 in revenue for your business for the year, then that is what you would report on your tax return as sales from your business no matter what the Form 1099-K says.
If you've kept good track of your sales on your accounting software, then all your sales including your credit and debit card sales will already be on your books. However, if you haven't kept good track of your revenue, you will need to make sure the sales shown on the Form 1099-K are included in your sales you are reporting on your tax return.
For example, if your books say that you have $40,000 in sales for the year but you receive a Form 1099-K saying you have processed $50,000 in credit card sales, then the IRS will wonder what is going on if you don't report at least $50,000 in sales for your business on your tax return.
Federal Income Tax Withheld on Form 1099-K
If you have federal income tax withheld in Box 4 of your Form 1099-K, you can enter that amount on the Extension and Other Tax Payments screen in the Miscellaneous Forms and Topics section.
Were you an Uber or Lyft driver?
Understanding your Form 1099-K
