Entering Form 1099-K transactions on Lacerte

If the 1099-K is from online gambling winnings see Entering gambling winnings and losses in Lacerte for how to enter the income.

Reporting Form 1099-K transactions separately isn't required, but the client may receive an IRS notice if the gross receipts don't reflect amounts from the 1099-K.

To avoid this, be sure to include amounts from Form 1099-K when calculating gross receipts or sales. Select your module below for instructions on reporting these amounts.

The IRS has included a new line on the 2024 Schedule 1 for nontaxable amounts received on Form 1099-K. Any taxable amounts on the 1099-K should be reported elsewhere on the return, depending on the type of transactions.

To enter taxable amounts from Form 1099-K in a 1040:

1. Go to:
   • Screen 16, Business Income (Sch C),
   • Screen 18, Rental & Royalty Inc (Sch E), or
   • Screen 19, Farm Income (Sch F, 4835).
2. Scroll down to the applicable income section for Schedule C, Schedule E, or Schedule F.
3. Enter amounts from Form 1099-K in the applicable income section.

To enter nontaxable amounts from Form 1099-K in a 1040:

1. Go to Screen 14.1, SS Benefits, Alimony, Miscellaneous Inc.
2. Scroll down to the Form 1099-K (Reporting of Nontaxable Amounts) section.
3. Enter the amount in the applicable field.

For more information, see here for the IRS's general FAQ on payment card and third-party network transactions.