Question

Paypal 1099K for product testing

Forum|Forum|4 years ago
February 7, 2022
1 reply
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I purchased some products for testing and received the product price minus taxes in return 2021 and it was less $750. Paypal issued 1099K for the total amount but the total that I've received is less because of the Paypal fees. Where do I input the 1099K and also how do I account for the fees and sales taxes that I've paid which was not in the 1099K? I have the Turbotax Deluxe version, do I need to use a different one? Thank you

JohnB5677

To post the income you will enter it under the Wages & Income tab at the top:

Scroll down and click Start next to Miscellaneous Income
Choose Other reportable income
Answer Yes to "Any Other Taxable Income?"
Under Description put "1099-K Testing Products"
Enter the amount from the 1099-K in the next box and click continue

If you wish to take advantage of the expenses you incurred, you will need the self-employment software. You will be able to create a small business using Schedule C, and take those deductions.

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