Poshmark 1099-k questions

Forum|Forum|2 years ago
February 25, 2024
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Hi, this is the first time I received a 1099-k and all of it is from the sale of my old clothes, shoes, etc. I got to the section in TT where I enter in the revenue, original cost, and Sales expenses not report. I understand I have to enter each transaction separately but I need help making sure my numbers are correct and have questions.

Question 1: the 1099-k says $3000 but $350 was cancelled sales. I checked the box and put $350 overstated, is that correct?

Question 2: In the "Investment Income" sales section of TT, I have proceeds totaling $2,120 ($2,650 the correct amount minus 20% that Poshmark takes) = is the "proceeds from sales" of $2,120 correct from my example.

Question 3: "Adjustment" - is this the difference between the original amount paid (Cost Basis minus the Proceeds from sales)

Questions 4: the last screen asks: "I paid sales expenses that aren't included in the sale proceeds reported on the form" = would this be where I put the 20% Poshmark takes? (I don't have any other sales expenses to report because I recycle boxes and bubble wrap, so do I put zero here?)

Question 5: If the answer is no to Question 4, is there a place where you put the 20% Poshmark takes? I ask this because the 1099k states $3000 which is already overstated by cancelled sales and I didn't make $3000, my sales were $2120.

Thank you

TurboTax Premier Online

Best answer by RobertB4444

So to start with you'll need to enter the entire $3000 for your 1099-K into the section for that in the self-employed section. Skip the section marked investment income - you don't have any of that, Then, in the section that says "I paid sales expenses that aren't included in the sales proceeds on the forms" you'll enter two expenses - refunds of $350 and sales fees of $530. That gets you to that $2120 total you are working towards.

You can also take expenses for the items that you are selling if you have any receipts for them.

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