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Entering Form 1099-K transactions in ProConnect Tax

by Intuit• Updated 11 months ago

For tax year 2023 returns: The IRS has implemented a new transition rule that delays reporting threshold changes. Your client may still receive 1099-Ks for transactions under the new, lower thresholds but they may not need to be separately stated in the tax return. Click here for more info.

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.

To enter a 1099-K on a 1040:

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

If your client received a 1099-K for nontaxable amounts:

  1. On the left-side menu, select Income.
  2. Click on the SS Benefits, Alimony, Misc. Income screen.
  3. Scroll down to the Form 1099-K (Reporting of Nontaxable Amounts) section.
  4. Enter the amount in the applicable field.
  1. Go to the Input Return tab.
  2. From the left of the screen, select Ordinary Income.
  3. Click on Income.
  4. Enter the amount in Gross receipts or sales.
  1. Go to the Input Return tab.
  2. From the left of the screen,, select Income.
  3. Click on Income.
  4. Enter the amount in Gross receipts or sales.

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