Generally, if you’re an independent contractor or self-employed, your Form 1099-K income will be reported directly on a Schedule C, Profit or Loss from a Business.
To access the Schedule C, go to:
- Federal Section
- Income (Enter Myself)
- Profit or Loss from a Business Schedule C
You receive the 1099-K because you have either:
- accepted payment cards for payments and used a payment settlement entity (PSE) or third-party settlement organization (TPSO) to receive the payment or
- received payments through a TPSO with over $20,000 in gross total reportable transactions and the number of those transactions exceeds 200, for the calendar year.
The form is used to report income received from electronic payments such as credit cards, debit cards, PayPal, Uber, Lyft and other third-party payers. This usually relates to any electronic sales transactions.
On the first screen of the Schedule C - Basic Information About Your Business; if you do not have a separate Business Name and Employer ID, please leave that section blank. You must complete the section for Business Type. Please “Click here for a list of Business Code” and select a code that best matches your self-employment business.
You enter your income from Form 1099-K in the Income section of the Schedule C for Gross receipts or sales.
You may also list associated expenses on your Schedule C such as General Expenses, Car and Truck Expenses, Depreciation, etc. These expenses will be used to offset the income listed on the Schedule C.
To view a sample Form 1099-K, please click here.
For more information about Schedule C, please click here.