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.
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.
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
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 Explore More.
Click Add beside Other Income.
Enter Medicaid waiver payments not reported on Form(s) W-2, if applicable, and click Continue.
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
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.
Click the Other Income drop-down, then click Prizes, awards or other miscellaneous income.
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
From within your TaxAct return, click Federal.
Click the Other Income drop-down, then click Prizes, awards or other miscellaneous income.
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
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 Explore More.
Click Add beside Sold Personal Property.
Complete the rest of the interview process.
Classic
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.
Click the Investment Income drop-down, then click Sold personal items.
Complete the rest of the interview process.
Desktop
From within your TaxAct return, click Federal.
Click the Investment Income drop-down, then click Sold personal items.
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.