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.
This article will help you report Form 1099-K income. Form 1099-K is an information return that shows the gross amount of all reportable payment transactions from payment card transactions and third party network transactions.
To enter a 1099-K for an individual:
- Press F6 to open the Open Forms window.
- Type 99k and select OK.
- Enter the filer's name and choose Select.
- Enter the Filer's Federal ID No.
- Enter the box 1 amount in Gross amount of payment card/third party network transactions.
- If this 1099-K is related to a business, double-click on the line for the related form:
- Schedule C
- Schedule D
- Schedule E
- Schedule F
- Form 4835
- Or, if this 1099-K wasn't related to a business, check the appropriate box for personal income:
- Hobby Income
- Other Income
- Personal Property Rental
- Enter any other applicable boxes from the 1099-K.
Entering a 1099-K for a business return:
If your client received any Form 1099-K, include those amounts in Gross Receipts, if applicable. Gross receipts can be reported on the following forms:
- Form 1120
- Form 1120S
- Form 1065
If there's withholding associated with the 1099-K, include this amount as an additional payment on, Part III of the Info Wks for 1120S or Schedule J Part III for 1120.
See the government instructions for the return type being filed for additional information.