Bartering income reported to you on a Form 1099-B Proceeds From Broker and Barter Exchange Transactions, Box 13 is generally reported to the IRS on Federal Schedule C Profit or Loss From Business.
To report this income in your TaxAct return:
- From within your TaxAct return (Online or Desktop), click Federal. On smaller devices, click in the upper left-hand corner, then click Federal.
- Click Business Income in the Federal Quick Q&A Topics menu to expand, then click Business income or loss from a sole proprietorship.
- Click + Add Schedule C to create a new copy of the form or click Edit to review a form already created.
- Continue with the interview process to enter all of the appropriate information.
- On the screen titled We need to know if Taxpayer/Spouse received any of these for their work in 2020, click the 1099-NEC box, then click Continue.
- On the screen titled Business Income - Gross Receipts, enter the Gross receipts (not reported on Form 1099-MISC or Form 1099-K) amount from Box 13 of your Form 1099-B, then click Continue. This will transfer to Line 1 of Federal Schedule C.
You may wish to refer to IRS Topic No. 420 Bartering Income for additional information.
Per IRS Publication 525 Taxable and Nontaxable Income, on page 20:
Bartering is an exchange of property or services. You must include in your income, at the time received, the FMV of property or services you receive in bartering. If you exchange services with another person and you both have agreed ahead of time on the value of the services, that value will be accepted as FMV unless the value can be shown to be otherwise.
Generally, you report this income on Schedule C (Form 1040 or 1040-SR). However, if the barter involves an exchange of something other than services, such as in Example 23, later, you may have to use another form or schedule instead.
See examples in Publication 525 for additional information.
Note that any link in the information above is updated each year automatically and will take you to the most recent version of the document at the time it is accessed.