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Desktop Form 1099-K - Reporting Sales of Personal Items, Services and Property

1099-K Payments for Personal Items, Services and Property

A payment app or online marketplace is required to send you a Form 1099-K if the payments you received for goods or services total over $20,000 from over 200 transactions. However, they can send you a Form 1099-K with lower amounts. Whether or not you receive a Form 1099-K, you must still report any income on your tax return.

This includes payments for any:

  • Goods you sell, including personal items such as clothing or furniture
  • Services you provide
  • Property you rent

The payments can be made through any:

  • Payment app
  • Online community marketplace
  • Craft or maker marketplace
  • Auction site Car sharing or ride-hailing platform
  • Ticket exchange or resale site
  • Crowdfunding platform
  • Freelance marketplace

If you accept payments on different platforms, you could get more than one Form 1099-K.

Note: Personal payments from family and friends should not be reported on Form 1099-K because they are not payments for goods or services.

Entering the 1099-K in TaxSlayer Pro Desktop

Entering Personal Items sold at a Loss

A loss on the sale of a personal item can't be deducted from your taxes. But you can zero out the reported gross income so you don't pay taxes on it. If you sold personal items at a loss, you have 2 options to report the loss:

On Schedule 1 (Form 1040) Part I:

  • Income
  • Other Income
  • Other Income - Enter the Form 1099-K gross payment amount (Box 1a) on Part I – Line 8z – Other Income: "Form 1099-K Personal Item Sold at a Loss". Enter the amount as a negative.

On Schedule 1 (Form 1040) Part II:

  • Adjustments
  • Other Adjustments
  • Other Adjustments - Enter the Form 1099-K gross payment amount (Box 1a) on Part II – Line 24z – Other Adjustments: "Form 1099-K Personal Item Sold at a Loss". Enter the amount as a positive.

Entering Personal Items sold at a Gain

If you receive a Form 1099-K for a personal item sold at a gain, figure and report the gain on both Form 8949, Sales and other Dispositions of Capital Assets and Schedule D (Form 1040), Capital Gains and Losses. In the TaxSlayer program entries from the 8949 carry to the Schedule D so this only needs to be entered once.

  • Income
  • Capital Gain/Loss
  • New (this creates the 8949)

Note: This is a guide on entering a Form 1099-K into the TaxSlayer Pro program. This is not intended as tax advice.

Additional Information: 

What to do with Form 1099-K

Desktop: Form 1099-K - Payment Card and Third Party Network Transactions