For those of us who receive a 2022 1099-K for selling personal items (such as on eBay), the IRS has specific instructions: https://www.irs.gov/businesses/understanding-your-form-1099-k Specifically, this section: If you receive a Form 1099-K for a personal item sold at a loss, report the information on Form 1040, Schedule 1, Additional Income and Adjustments to Income with offsetting transactions. For example, if you receive a Form 1099-K for selling your couch online for $700 you will report:Part I – Line 8z – Other Income – Form 1099-K Personal Item Sold at a Loss $700Part II – Line 24z – Other Adjustments - Form 1099-K Personal Item Sold at a Loss $700The net effect of these two adjustments on adjusted gross income would be $0. I have tried unsuccessfully for several hours in TT Deluxe to figure out how to get to Line 24z on Schedule 1. I've seen that the question has been asked in past years, and members have been told to use offsetting amounts for Other Income, which show up on Line 8z. But given the specific IRS guidelines, this no longer seems right. Any ideas how/if we can access Line 24z?

Yes, you have the right idea; but there isn't a way to access Line 24z (unless you override causing issues and it may not let you e-file). As per the revised IRS instructions, Form 8949 is used in this case. Proceeds/losses from “sales of personal items” are reported on Form 8949. Whether it is one personal item or more sold, it'll go to Form 8949. There was a revision on January 27, 2023, from the IRS regarding the reporting of 1099Ks, with losses from sales of personal item(s) reported to the taxpayer on form 1099K. It states to either report on Form 8949 as done, or Schedule I lines 8z and 24z, as applicable. Again, since it is Personal Items, in TurboTax it's correctly reported on Form 8949. First, enter your 1099K, after you enter your Box 1a gross amount and payer select continue. Select “Learn More” for instructions to enter your cost basis and proceeds in another section for your losses/gains (see instructions below). We’ve collected your 1099-K information, but you’ll need to add more info about your sale in another section. For TurboTax Online:Select Continue on this screen.On the Your 1099-K Summary screen, select Done.From the Income Landing table, navigate to Investment topics, and select Start or Revisit for "Stocks, Cryptocurrency, Mutual Funds, Bonds, Other (1099-B).Go to Investments and Savings (1099-B, 1099-INT, 1099-DIV, 1099-K, Crypto) on the Income & Expenses screen. Select Edit/Add. On Your Investments and Savings Summary screen, you’ll see a line item for your 1099-K income. Select Edit or Review and enter the information for the first personal sale item.Be sure to select Personal Items under the What type of investment did you sell?The Cost or other basis amount should be the amount you originally paid for the item.Select Continue when you’re finished to go to the Review your Sales screen.If there was more than one personal item sale included in the 1099-K amount, select Add another sale to add each item.If you sold your personal item(s) for a loss, that loss cannot offset other income on your tax return like capital loss items (stocks).If you sold your personal item(s) for a gain, then you’ll need to pay short or long term gains tax on it, depending on how long you held the item. This is why you should enter each item separately and not net them together. @kathyc21

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kathyc21

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eBay 1099-K Selling Personal Items How to Access Schedule 1 Line 24z

Forum|Forum|3 years ago
January 31, 2023
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For those of us who receive a 2022 1099-K for selling personal items (such as on eBay), the IRS has specific instructions: https://www.irs.gov/businesses/understanding-your-form-1099-k

Specifically, this section:

If you receive a Form 1099-K for a personal item sold at a loss, report the information on Form 1040, Schedule 1, Additional Income and Adjustments to Income with offsetting transactions. For example, if you receive a Form 1099-K for selling your couch online for $700 you will report:

Part I – Line 8z – Other Income – Form 1099-K Personal Item Sold at a Loss $700
Part II – Line 24z – Other Adjustments - Form 1099-K Personal Item Sold at a Loss $700

The net effect of these two adjustments on adjusted gross income would be $0.

I have tried unsuccessfully for several hours in TT Deluxe to figure out how to get to Line 24z on Schedule 1. I've seen that the question has been asked in past years, and members have been told to use offsetting amounts for Other Income, which show up on Line 8z. But given the specific IRS guidelines, this no longer seems right.

Any ideas how/if we can access Line 24z?

Best answer by MichaelG81

Yes, you have the right idea; but there isn't a way to access Line 24z (unless you override causing issues and it may not let you e-file). As per the ‌revised IRS instructions, Form 8949 is used in this case. Proceeds/losses from “sales of personal items” are reported on Form 8949. Whether it is one personal item or more sold, it'll go to Form 8949.

There was a revision on January 27, 2023, from the IRS regarding the reporting of 1099Ks, with losses from sales of personal item(s) reported to the taxpayer on form 1099K. It states to either report on Form 8949 as done, or Schedule I lines 8z and 24z, as applicable.

Again, since it is Personal Items, in TurboTax it's correctly reported on Form 8949. First, enter your 1099K, after you enter your Box 1a gross amount and payer select continue. Select “Learn More” for instructions to enter your cost basis and proceeds in another section for your losses/gains (see instructions below).

We’ve collected your 1099-K information, but you’ll need to add more info about your sale in another section. For TurboTax Online:

Select Continue on this screen.
On the Your 1099-K Summary screen, select Done.
From the Income Landing table, navigate to Investment topics, and select Start or Revisit for "Stocks, Cryptocurrency, Mutual Funds, Bonds, Other (1099-B).
Go to Investments and Savings (1099-B, 1099-INT, 1099-DIV, 1099-K, Crypto) on the Income & Expenses screen. Select Edit/Add.
On Your Investments and Savings Summary screen, you’ll see a line item for your 1099-K income. Select Edit or Review and enter the information for the first personal sale item.
- Be sure to select Personal Items under the What type of investment did you sell?
- The Cost or other basis amount should be the amount you originally paid for the item.
Select Continue when you’re finished to go to the Review your Sales screen.
- If there was more than one personal item sale included in the 1099-K amount, select Add another sale to add each item.

If you sold your personal item(s) for a loss, that loss cannot offset other income on your tax return like capital loss items (stocks).

If you sold your personal item(s) for a gain, then you’ll need to pay short or long term gains tax on it, depending on how long you held the item. This is why you should enter each item separately and not net them together.

@kathyc21

SantinoD

Follow these instructions provided by @DaveF1006

To enter:

Go to wages and income>less common income.
Go to Miscellaneous Income, 1099-A, 1099-C
Go to Other reportable income
In the description field, enter 1099k income. Paypal receipts for return of capital. put in the amount of the 1099K.
After entering this, there will be a summary page that appears. Select add another miscellaneous income item.
Here put in the description 1099K is for the return of my investment. There was no income earned and enter a negative number for the amount of the 1099K.
What this does is show the positive and negative amounts on line 8Z, which cancels out the income.
Be specific in your description fields for both of the miscellaneous income entries so the IRS will see how you justify this isn't taxable income. You will to make clear that this is for the return of your capital and that none of it is PayPal income.

Original post: How do I enter something on Schedule I, Line 24z?

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kathyc21Author

Thank you, @SantinoD for the thorough response. I had actually found that thread when I was searching for an answer. And while having offsetting amounts on Line 8z might be an acceptable workaround, it is not exactly what the IRS guidelines specify. That's why I was asking the question - I had hoped to be able to report exactly as the IRS has specified, with the total sale amount on Line 8z and the offsetting number on Line 24z.

MichaelG81Answer

Yes, you have the right idea; but there isn't a way to access Line 24z (unless you override causing issues and it may not let you e-file). As per the ‌revised IRS instructions, Form 8949 is used in this case. Proceeds/losses from “sales of personal items” are reported on Form 8949. Whether it is one personal item or more sold, it'll go to Form 8949.

There was a revision on January 27, 2023, from the IRS regarding the reporting of 1099Ks, with losses from sales of personal item(s) reported to the taxpayer on form 1099K. It states to either report on Form 8949 as done, or Schedule I lines 8z and 24z, as applicable.

Again, since it is Personal Items, in TurboTax it's correctly reported on Form 8949. First, enter your 1099K, after you enter your Box 1a gross amount and payer select continue. Select “Learn More” for instructions to enter your cost basis and proceeds in another section for your losses/gains (see instructions below).

We’ve collected your 1099-K information, but you’ll need to add more info about your sale in another section. For TurboTax Online:

Select Continue on this screen.
On the Your 1099-K Summary screen, select Done.
From the Income Landing table, navigate to Investment topics, and select Start or Revisit for "Stocks, Cryptocurrency, Mutual Funds, Bonds, Other (1099-B).
Go to Investments and Savings (1099-B, 1099-INT, 1099-DIV, 1099-K, Crypto) on the Income & Expenses screen. Select Edit/Add.
On Your Investments and Savings Summary screen, you’ll see a line item for your 1099-K income. Select Edit or Review and enter the information for the first personal sale item.
- Be sure to select Personal Items under the What type of investment did you sell?
- The Cost or other basis amount should be the amount you originally paid for the item.
Select Continue when you’re finished to go to the Review your Sales screen.
- If there was more than one personal item sale included in the 1099-K amount, select Add another sale to add each item.

If you sold your personal item(s) for a loss, that loss cannot offset other income on your tax return like capital loss items (stocks).

If you sold your personal item(s) for a gain, then you’ll need to pay short or long term gains tax on it, depending on how long you held the item. This is why you should enter each item separately and not net them together.

@kathyc21

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SantinoD

The way TurboTax is set up, it doesn't allow you to enter directly into the Forms. The instructions on the IRS website are very specific to Forms and lines but most Tax preparation software (especially self-prepare software like TurboTax) uses interview-style questions to help guide you so the numbers are placed in the correct Forms and lines.

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Opus 17

Employee

@kathyc21

Basically, turbotax is broken, and line 24z doesn't work. You can use the alternative procedure (which will zero out the income, but in a different way than instructed by the IRS), or you will need to look for an alternative tax prep service.