Entering Form 1099-K transactions in ProConnect Tax

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.

For tax year 2025 returns: For the most up to date information on 1099-K reporting requirements see the newest information from the IRS here.

To enter taxable income from a 1099-K on a 1040:

1. Go to Input Return ⮕ Income.
2. Select the appropriate income screen (such as Business Income (Sch C), Rental and Royalty Income (Sch E), or Farm Income (Sch F, 4835).
3. Select the Income Statemen tab.
4. Enter amounts from Form 1099-K in the applicable income section.

To enter nontaxable income from a 1099-K on a 1040:

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.

1. Go to Input Return  ⮕ Income  ⮕ SS Benefits, Alimony, Misc. Income.
2. Scroll down to the Form 1099-K (Reporting of Nontaxable Amounts) section.
3. Enter the amount in the applicable field.

Partnership (1065) and S-Corp (1120S)

1. Go to Input Return  ⮕ Ordinary Income  ⮕ Income.
2. Enter the amount in Gross receipts or sales.

Corporate (1120)

1. Go to Input Return  ⮕ Income  ⮕ Income.
2. Enter the amount in Gross receipts or sales.