2. misc-audio
  3. 163567-94588

1099-K from PayPal (tax form)

It looks like I am getting a 1099-k form from PayPal for the first time. I sold a lot of audio items last year, used, while upgrading my system and swapping things around. Obviously I am not a business, not in this for profit, and did not make money, lost money. It’s just a hobby, a costly one.

I am guessing I have to report this with my taxes. However, the form only has the gross proceeds from PayPal, not my original purchase price. How do I deal with this? Any particular section on Turbo Tax to enter these?
128x128thyname
thyname's avatar
thyname OP
3,107 posts
 
@jetter —- thanks!

Which sentence are you talking? This one?

———
If your Form 1099-K is for casual one-time sales and is not a business or even a hobby with recurring income (this can include income from PayPal, Square Card reader, or other electronic payments)  enter the income in TurboTax by going to Misc Income and selecting the last option. Enter the description as income from 1099-K and the amount.

———-

I am definitely not a “business”

thyname's avatar
thyname OP
3,107 posts
 
@lalitk —- me too, and never had received one before either.

I guess this was the first year that I met both those criteria (over $20K in PayPal payments, I had ~$27K, AND 200 or more transactions). I cannot believe it 🤭😂
lalitk's avatar
lalitk
5,443 posts
 
^^^^I believe it...only one way to beat this, stop browsing for new gear 😊
thyname's avatar
thyname OP
3,107 posts
 
Agreed!! 😂
rodman99999
6,130 posts
 
So many variables/possibilities (why I mentioned contacting a tax attorney).       Wish I could better advise you, but- my tax situation is vastly different.
More to discover