For tax year 2023 returns: The IRS has implemented a new transition rule that delays reporting threshold changes. Your client may still receive 1099-Ks for transactions under the new, lower thresholds but they may not need to be separately stated in the tax return. Click here for more info.
Reporting Form 1099-K transactions separately isn't required, but the client may receive an IRS notice if the gross receipts don't reflect amounts from the 1099-K.
To avoid this, be sure to include amounts from Form 1099-K when calculating gross receipts or sales. Select your module below for instructions on reporting these amounts.
To enter Form 1099-K in a 1040:
- Go to:
- Screen 16, Business Income (Sch C),
- Screen 18, Rental & Royalty Inc (Sch E), or
- Screen 19, Farm Income (Sch F, 4835).
- Scroll down to the applicable income section for Schedule C, Schedule E, or Schedule F.
- Enter amounts from Form 1099-K in the applicable income section.
If your client received a 1099-K for nontaxable amounts:
- Go to Screen 14.1, SS Benefits, Alimony, Miscellaneous Inc.
- Scroll down to the Form 1099-K (Reporting of Nontaxable Amounts) section.
- Enter the amount in the applicable field.
For more information, see here for the IRS's general FAQ on payment card and third-party network transactions.
