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 was incorrectly reported, follow the steps below:
TaxAct Online
- 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.
- Expand Miscellaneous Income
- Click Add beside Sold Personal Property.
- Select either Upload a File or Enter Info Myself.
- Proceed with the Q&A.
- Choose Personal or nonbusiness income (Form 1040) to report your income.
- Select Sold Personal Items from the income options.
- On the page titled, Was any of your 1099-K income from selling personal use items at a loss? Click Yes, I sold Personal Use Items at a Loss.
- You will then be prompted to report the amount of income from selling personal use items at a loss.
Desktop
- From within your TaxAct return, click Federal. From the Income page, click Other Income and select Other income not listed above from the dropdown.
- On the next page, click Other income not listed above.
- On the page titled, Other Income, enter income under Form(s) 1099-K Personal Items Sold at a Loss or 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 the steps below:
TaxAct Online
- 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.
- Expand Miscellaneous Income
- Click Add beside Sold Personal Property.
- Select either Upload a File or Enter Info Myself.
- Proceed with the Q&A.
- Choose Personal or nonbusiness income (Form 1040) to report your income.
- Select Sold Personal Items from the income options.
- On the page titled, Do you need to report income from any of these types of sales? Click Yes.
- You will then be prompted to report the details of the item you sold.
- Select if the item was for Personal use or Investment.
Desktop
- From within your TaxAct return, click Federal. From the Income page, click Other Income and select Other income not listed above from the dropdown.
- On the next page, click Other income not listed above.
- On the page titled, Other Income, enter income from personal items sold at a gain.
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
- What to do with Form 1099-K
- Form 1099-K FAQs: Common situations
- Gig Economy Tax Center
- Understanding Your Form 1099-K