I received a 1099-K for personal items I sold. How do I report it?

Did you sell some personal items and receive payment through an app? Now you have received a 1099-K and don't know what to do with it? We can help!

Items Sold at a Gain

A gain made on the sale of a personal item is taxable.

If you receive a Form 1099-K for a personal item sold at a gain, report it as follows: 

1. Federal Section 
2. Income
3. Select my forms
4. Investments
5. Stocks, Mutual Funds, Cryptocurrency, Collectibles, etc.
6. Enter sales one by one
7. Report the sale by entering the information requested

Items Sold at a Loss

A loss on the sale of personal items is not deductible. If you received a 1099-K for personal items sold at a loss, you must still report the 1099-K. However, you can offset the income for this sale. 

Example: You receive a Form 1099-K for selling your dining room table online for $750. You paid $1,250 for it. You cannot claim the loss, but can offset the income by following these steps: 

Reporting the income:

Follow these steps within our program to report the income. 

1. Federal Section 
2. Income
3. Select my forms
4. Less common Income 
5. Other Income Not Reported Elsewhere
6. Choose Other Income
7. Enter the description of the income (why are you deducting it) as "1099-K personal sale loss" and include the dollar amount. 
8. Enter the amount of the income you are reporting from Form 1099-K
9. Continue to save your entry

Subtracting the Income:

Subtracting the income will be a duplicate entry with a slight change. Please follow the steps below to make your subtraction. 

1. Federal Section
2. Deductions
3. Select my forms
4. Adjustments to Income 
5. Other Adjustments
6. Other Adjustments Not Listed Above
   • Enter the Description as "1099K received in error"
   • Enter the amount that should not be considered income on the 1099-K

Additional Information

For additional information on 1099-K reporting, please visit our Knowledgebase