Form 1099-K – Payment Card and Third Party Network Transactions
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Use Form 1099-K to report Payment Card and Third Party Network transactions. You will report the information on a specific part of your return, depending on nature the activities performed in generating the income. Examples: sold personal items, activity not engaged in for profit (hobby), business, farming, rent or royalty activities.

To enter your Form 1099-K in the TaxAct program:

    1. From within your TaxAct return (Online or Desktop), click Federal (on smaller devices, click in the top left corner of your screen, then click Federal).
    2. Click the Form 1099-K.
    3. Continue with the interview process to enter your Form 1099-K information.

Once you’ve entered your Form 1099-K you need to report the income reported on Form 1099-K in a specific part of your return, depending on nature the activities performed in generating the income.

Income related to the sale of personal item at a loss or incorrectly reported:

    1. From within your TaxAct return (Online or Desktop), click Federal (on smaller devices, click in the top left corner of your screen, then click Federal).
    2. Click the Other Income dropdown, then click Prizes, awards or other miscellaneous income.
    3. Enter the amount of income reported on Form 1099-K that was for personal item(s) sold at a loss or Incorrect Form 1099-K income.

Note: An adjustment amount will automatically be entered on Schedule 1 to reduce the taxable amount of income from the sale of a personal item(s) to $0.

Income related to the sale of personal item at a gain:

    1. From within your TaxAct return (Online or Desktop), click Federal (on smaller devices, click in the top left corner of your screen, then click Federal).
    2. Click the Investment Income dropdown, then click Gain Sold personal items.
    3. Click + Add Sale to create a new sale or click Edit to edit a sale already created (desktop program: click Review instead of Edit).
    4. Continue with the interview process to enter your information.

Income related to the sale of collectibles:

    1. From within your TaxAct return (Online or Desktop), click Federal (on smaller devices, click in the top left corner of your screen, then click Federal).
    2. Click the Investment Income dropdown, then click Gain Sold personal items.
    3. Click + Add Sale to create a new sale or click Edit to edit a sale already created (desktop program: click Review instead of Edit).
    4. Continue with the interview process to enter your information and indicate the item sold was a collectible.

Income related to business activities:

To enter or review information for Federal Schedule C (Form 1040) Profit or Loss from Business (Sole Proprietorship):

    1. From within your TaxAct return (Online or Desktop), click Federal (on smaller devices, click in the top left corner of your screen, then click Federal).
    2. Click the Business Income dropdown, then click Business income or loss from a sole proprietorship.
    3. Click + Add Sale Schedule C  to create a new copy of the form or click Edit to edit a form already created (desktop program: click Review instead of Edit).
    4. Continue with the interview process to enter your information.
    5. In the income portion of the interview process you will be able to enter the portion of income reported on Form 1099-K that is for the business.

Income related to rental or royalty activities:

To enter or review information for Schedule E (Form 1040) Supplemental Income and Loss:

    1. From within your TaxAct return (Online or Desktop), click Federal (on smaller devices, click in the top left corner of your screen, then click Federal).
    2. Click the Rent or Royalty Income dropdown, then click Real estate rental income or Royalties.
    3. Click + Add Sale Schedule E  to create a new copy of the form or click Edit to edit a form already created (desktop program: click Review instead of Edit).
    4. Continue with the interview process to enter your information.
    5. In the income portion of the interview process you will be able to enter the portion of income reported on Form 1099-K that is for the rental or royalty activity.

Income related to farming activities:

The following steps will enable you to enter or review farming-related income for Federal Schedule F (Form 1040) Profit or Loss From Farming.

To enter or review farming income information:

    1. From within your TaxAct return (Online or Desktop), click Federal (on smaller devices, click in the top left corner of your screen, then click Federal).
    2. Click the Business Income dropdown, then click Farming income or loss..
    3. Click + Add Sale Schedule F  to create a new copy of the form or click Edit to edit a form already created (desktop program: click Review instead of Edit).
    4. Continue with the interview process to enter your information.
    5. In the income portion of the interview process you will be able to enter the portion of income reported on Form 1099-K that is for farming activities.

Income related to activity not engaged for profit (Hobby):

To enter hobby income and expenses in the TaxAct® program:

    1. From within your TaxAct return (Online or Desktop), click Federal (on smaller devices, click in the top left corner of your screen, then click Federal).
    2. Click the Other Income dropdown, then click Activities not for profit.
    3. Enter the portion of income reported on Form 1099-K that is for activities not engaged for profit.

Note that any link in the information above is updated each year automatically and will take you to the most recent version of the webpage or document at the time it is accessed.