Online Products Xpert Assist Download Products Self-Employment Taxes Business Taxes Business and Home Bundles Tax-Exempt Organizations Estates and Trusts Previous Year's Products Professional Taxes
Tax Calculator Self-Employment Calculator Tax Bracket Calculator W-4 Calculator Tax Checklists Tax Extensions TaxAct Blog
Check E-file Status Track IRS Refund
Blog Support TaxAct for Professionals

How can we help?

Popular Topics: Import Options Refund Status Amend Return File Extension
Help Center  >  Individuals  >  Preparing Your Return  >  Income & Wages

Form 1099-K – Entering in Program

Form 1099-K is required to be issued by payment card companies, payment apps and online marketplaces to report payments made in settlement of reportable payment transactions. Like Form W-2 or 1099-NEC, this form will be issued to the taxpayer and the IRS by the issuer.

See the IRS Instructions for Form 1099-K for a list of who must file and exceptions. 

You will need to determine where to report the income from Form 1099-K, depending on the nature of the activities performed when the income was generated. Here are some common examples.

Hobby
If the income reported on Form 1099-K was related to your hobby, see the FAQ Hobby Income and Expenses.

Self-Employed Business
If the income reported on Form 1099-K was related to your business as a self-employed or gig-worker (filing Schedule C), see the FAQ Schedule C – Entering Sole Proprietorship in Program. 

Rent or Royalty
If the income reported on Form 1099-K was related to rent or royalty income (filing Schedule E), see the FAQ Schedule E – Entering Rental Property in Program.

Farming
If the income reported on Form 1099-K was related to farm income (filing Schedule F), see the FAQ Schedule F – Entering Farm Income in Program. 

Sale of Personal Item (Loss) or Incorrectly Reported
If the income reported on Form 1099-K was related to the sale of personal items sold at a loss, or incorrectly reported, follow these steps. 
Online
Dashboard
  1. From within your TaxAct return, click Income.
    • On smaller devices, click the menu at the top left corner of your screen, then make your selection. 
  2. Expand Explore More. 
  3. Click Add beside Other Income. 
  4. Enter Medicaid waiver payments not reported on Form(s) W-2, if applicable, and click Continue. 
  5. Enter the amount of income reported on Form 1099-K that was either: 
    • Form(s) 1099-K Personal Items Sold at a Loss
    • Incorrect Form 1099-K income
Classic
  1. From within your TaxAct return, click Federal.
    • On smaller devices, click the menu at the top left corner of your screen, then make your selection. 
  2. Click the Other Income drop-down, then click Prizes, awards or other miscellaneous income.
  3. Enter the amount of income reported on Form 1099-K that was either: 
    • Form(s) 1099-K Personal Items Sold at a Loss
    • Incorrect Form 1099-K income
Desktop
  1. From within your TaxAct return, click Federal.
  2. Click the Other Income drop-down, then click Prizes, awards or other miscellaneous income.
  3. Enter the amount of income reported on Form 1099-K that was either: 
    • Form(s) 1099-K Personal Items Sold at a Loss
    • Incorrect Form 1099-K income
Sale of Personal Item (Gain)
If the income reported on Form 1099-K was related to the sale of personal items sold at a gain, follow these steps. 
Online
Dashboard
  1. From within your TaxAct return, click Income.
    • On smaller devices, click the menu at the top left corner of your screen, then make your selection. 
  2. Expand Explore More.
  3. Click Add beside Sold Personal Property. 
  4. Complete the rest of the interview process. 
Classic
  1. From within your TaxAct return, click Federal.
    • On smaller devices, click the menu at the top left corner of your screen, then make your selection. 
  2. Click the Investment Income drop-down, then click Sold personal items.
  3. Complete the rest of the interview process. 
Desktop
  1. From within your TaxAct return, click Federal.
  2. Click the Investment Income drop-down, then click Sold personal items.
  3. Complete the rest of the interview process. 
Collectibles
If the income reported on Form 1099-K was related to the sale of collectibles, follow the steps above for sale of personal item (gain). When entering the sale details, check the box This was a collectible below the Description.  

Related Links