Entering 1099-K income shows as $0 on the Business Income summary...why?

Forum|Forum|3 years ago
February 4, 2023
1 reply
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I know that a 1099-K shows the gross total of transactions, but I have entered it in the business income section of turbotax under 1099-K Income, yet it doesnt seem to be contributing that to my taxable income...Is there a second part to this that I am missing?

I assume that I can just include fees and tax in some part of the business expenses section, to get me to the actual amount of money I was paid by Etsy, but I am not sure which category.

Thanks in advance!

AliciaP1

You may have entered it into the incorrect section or didn't proceed through the full interview about the 1099-K. The best thing to do would be to delete the 1099-K entry and re-enter it.

To do this in TurboTax Online you can follow these steps:

Within your return, click on Tax Tools in the black menu on the left side of the screen.
Click on Tools.
Click on Delete a Form.
Scroll down to your Form 1099-K and click Delete.
Under Federal in the black menu bar click Wages & Income to get back into your tax returns.
Scroll down to Self-employment and click the dropdown to Show more
Click Start and answer the questions about the income
When you get to the Let's enter the income for XXX work screen choose Form 1099-K and proceed with entering your information and expenses

After you enter your income you can enter the expenses under whatever category seems to fit them best. You can also see What self-employed expenses can I deduct? to be sure you don't miss any eligible expenses!

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mgd092907Author

Hi,

Unfortunately, this didnt solve my issue. As you can see in the images I have attached. I removed the 1099-k (download version) and re-added. It shows the 1099-k income on when click into it, but on the summary view it shows $0 and is not contributing to my income.

I am rattling my brain over this. I dont know if its a bug in the software or if I'm doing something wrong.

ThomasM125

I ran up some numbers like you described and noticed the same thing happend. However, I noticed that the income from the 1099-K did show up on my schedue C, even though it didn't show on the Business Income worksheet you displayed. It is probably on your tax return. You can view your form 1040 and schedule 1 in TurboTax where you will see your business profit on line 3. You need to enter it as Self-Employment income: