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.

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 income from 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.

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

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

Related topics

• Entering amounts from Form 1098 and 1099 in ProConnect
• Where do I enter amounts from a 1099-MISC?