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Solved

Where to enter cost of goods to offset consignment store 1099-Misc Lines 3 'Other Income'

Forum|Forum|2 years ago
March 27, 2024
2 replies
0 views

So, cleaned out my closet, and got a 1099-Misc, but can't figure out where in TT to offset the income as reported in the 1099-Misc with my original purchase cost.

Does anyone know exactly the path to find this? This is my first time with this, so I'm a little confused.

Thank you!

Best answer by KrisD15

After you enter the 1099-MISC and answer

No, not like work

No, not intent to make money

Only received this one tax year

The income should show on your Schedule 1 line 8z

Next, go back to Income

Less Common Income

Miscellaneous Income, 1099-A, 1099-C START or UPDATE

Scroll down to "Other reportable income" START or UPDATE

Select "Yes" for "Any Other Taxable Income?"

Type a description such as "Personal items sold reported on 1099-MISC"

Enter the same amount as the 1099-MISC as a negative number (put a - in front of the number)

(Note: DO NOT ENTER A LARGER NEGATIVE NUMBER THAN WHAT WAS REPORTED ON THE 1099-MISC You cannot take a loss on the sale of personal items)

Finish this interview

The amount on the 1099-MISC as well as a negating amount will both be reported on Schedule 1 line 8 to result in zero income.

@Hurricane150

Bsch4477

Employee

You don’t offset your income from the sale of personal items. If you sold them for less than you paid the income is not taxed. After reporting your other income report other income again with a negative value with “personal items sold less than cost “.

KrisD15Answer

After you enter the 1099-MISC and answer

No, not like work

No, not intent to make money

Only received this one tax year

The income should show on your Schedule 1 line 8z

Next, go back to Income

Less Common Income

Miscellaneous Income, 1099-A, 1099-C START or UPDATE

Scroll down to "Other reportable income" START or UPDATE

Select "Yes" for "Any Other Taxable Income?"

Type a description such as "Personal items sold reported on 1099-MISC"

Enter the same amount as the 1099-MISC as a negative number (put a - in front of the number)

(Note: DO NOT ENTER A LARGER NEGATIVE NUMBER THAN WHAT WAS REPORTED ON THE 1099-MISC You cannot take a loss on the sale of personal items)

Finish this interview

The amount on the 1099-MISC as well as a negating amount will both be reported on Schedule 1 line 8 to result in zero income.

@Hurricane150

**Say "Thanks" by clicking the thumb icon in a post**Mark the post that answers your question by clicking on "Mark as Best Answer"

Hurricane150Author

All,

Thank you so much on this - this seemed to handle the issue on my Federal, but I think this is getting included as income in my state (NJ) taxes, and I don't see the offset of the cost of goods (although maybe it's buried somewhere?). If anyone knows if there is something additional I should do, that would be appreciated.

MonikaK1

You can view your entire return or just your 1040 form before you e-file to see how your taxes were calculated and to preview the forms that TurboTax has prepared from your entries:

Sign in to your TurboTax account
Open or continue your return
Select Tax Tools from the menu (if you don't see this, select the menu icon in the upper-left corner)
With the Tax Tools menu open, you can then:
- Preview your entire return: Select Print Center and then Print, save or preview this year's return (you may be asked to register or pay first if you choose this option)
- View only your 1040 form: Select Tools. Next, select View Tax Summary in the pop-up, then Preview my 1040 in the left menu

Tax Summaries of any State returns are also shown in the left menu.

You would need to pay for your product in order to see the entire state tax return.

If you confirm that your state tax return didn't include the negative figure you entered to back out the income on Form 1099-MISC on your Federal return, go through the New Jersey questionnaire again until you find the screen where you can enter adjustments to New Jersey income.

**Say "Thanks" by clicking the thumb icon in a post**Mark the post that answers your question by clicking on "Mark as Best Answer"