
Entering Form 1099-K transactions in ProConnect Tax
by Intuit•2• Updated 2 months ago
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:
- Go to the Input Return tab.
- From the left of the screen, select Income.
- Select the appropriate income screen (such as Business Income (Sch C), Rental and Royalty Income (Sch E), or Farm Income (Sch F, 4835).
- From the top of the screen, select Income Statement.
- Enter amounts from Form 1099-K in the applicable income section.
To enter nontaxable income from a 1099-K on a 1040:
- Go to the Input Return tab.
- On the left-side menu, select Income.
- Select the SS Benefits, Alimony, Misc. Income screen.
- Scroll down to the Form 1099-K (Reporting of Nontaxable Amounts) section.
- Enter the amount in the applicable field.