1040 Schedule 1 not appearing (for 1099-K income)

Forum|Forum|1 year ago
January 10, 2025
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TT Windows desktop 2024 edition. I have some personal item eBay sales (1099-K expected) all at a loss. I entered the amount and type correctly in the interview. The IRS instructions say for personal sales at a loss, the amount should appear at the very top of Schedule 1.

When I look at the forms included in my return, Schedule 1 does not appear in the list. If I search for forms and bring up Schedule 1, the 1099-K amount is at the top as it should be. Yet it doesn't appear that TT will include it in my return.

I was forced to use Form 8949 and Schedule D (along with the "L" correction codes on 8949 in order to get the personal losses all to equal zero) so at least the IRS will see my 1099-K amount somewhere in my return.

But what's the deal with Schedule 1?

TurboTax Basic Windows

DawnC

Employee

If all of the income on the 1099-K was from losses on personal sale items, you should not need the 8949. If you choose Personal Item Sales as the reason for the 1099-K and enter the same amount in both boxes (1a and Amount that shouldn't be included), no further reporting is necessary. The amount goes to the information box on Schedule 1, but is not included as an income or loss amount on your actual tax return. If there is no other data on Schedule 1, it won't be a part of your electronic filing, however, the reporting of the 1099-K is part of your tax file.

Keep detailed records in case of an inquiry by saving a full copy of your tax return that includes all worksheets. The erroneous amounts are reported on the Other Income Statement and 1099-K Summary page as well as the 1099-K worksheet.

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wa1fhyAuthor

Thanks for the clarification. I was concerned that the IRS would receive a copy of the 1099-K and then not be able to find the corresponding amount on my return. I didn't click the checkbox under line 1a during the TT interview, because I thought it only applied to incorrect 1099-K amounts - that was my mistake.

I've already prepared the full 8949 form showing every personal sale transaction and since I have some investment capital gains/losses that legitimately need to go on the 8949, I probably will submit the 8949 with all the personal sale items (corrected to zero loss) anyway. That should satisfy any curiosity by the IRS.

wa1fhyAuthor

The more I think about this, the less it makes sense. If Schedule 1 has the info box at the top for 1099-K personal item sales (all at a loss) and TurboTax doesn't include Schedule 1 during filing because there are no other Schedule 1 items, then what is the point of filling out the info box? If the IRS looks for the corresponding 1099-K amount in my return, it will be nowhere to be found (I assume this is true both for e-file and printed mail submissions). Or is that 1099-K amount "hidden" somewhere in the printed or e-file forms submitted?

Seems to me if there is ANYTHING written on Schedule 1, it ought to be part of my return. Period.