Form 1099-K, Payment Card and Third Party Network Transactions, is a form issued by financial institutions that process electronic payments such as credit and debit card transactions. Form 1099-K is sent to individuals that receive such payments by January 31st and it is considered part of the gross receipts of the taxpayer's business income.
Form 1099-K shows the gross amount of income that the taxpayer received from electronic payments such as credit cards, debit cards, and other third party payers in the operation of their business activity.
The income received on Form 1099-K should be included in the gross receipts of the taxpayer's business income:
- For a sole proprietor, Form 1099-K receipts are generally reported on Schedule C, but could potentially be reported on Schedule E or F.
- For a partnership or corporation, verify that the income on the 1099-K is already included in the company's gross receipts.
To enter the 1099-K in TaxSlayer ProWeb, from the main menu select:
- Income
- Form1099-K - Complete all required entries
After completing the required entries, continue to the next screen to attach the 1099-K to the appropriate Schedule.
- How would you like to report this income - Select the Schedule to attach to it.
- Where would you like to report this income - Create a Schedule or Report on a Schedule already created
If the appropriate Schedule has already been added it will display as an option to attach the 1099-K income.
Note: This is a guide on entering a Form 1099-K into TaxSlayer ProWeb. This is not intended as tax advice.
Additional Information: