How can we help?
search-icon
Popular Topics:     Import Options  •   Refund Status  •   Amend Return  •   File Extension
Help Center>
Form 1099-K – Payment Card and Third Party Network Transactions
1
Use Form 1099-K to report Payment Card and Third Party Network transactions. You will need to determine where to report the income from Form 1099-K, depending on the nature of the activities performed when the income was generated. Here are some common examples.
 
Income related to the sale of personal item at a loss or incorrectly reported:
  1. In your TaxAct return, click Federal (on smaller devices, click in the top left corner of your screen, then click Federal).
  2. Click the Other Income dropdown, then click Prizes, awards or other miscellaneous income.
  3. Enter the amount of income reported on Form 1099-K that was either: 
    • Form(s) 1099-K Personal Items Sold at a Loss
    • Incorrect Form 1099-K income
Note: The amount will automatically be shown at the top of Schedule 1.
 
Income related to the sale of personal item at a gain:
  1. In your TaxAct return, click Federal (on smaller devices, click in the top left corner of your screen, then click Federal).
  2. Click the Investment Income dropdown, then click Sold personal items.
  3. Enter your sale details. 
    • If you have already entered a different sale, you will need to click Add Sale.
Income related to the sale of collectibles:
  1. In your TaxAct return, click Federal (on smaller devices, click in the top left corner of your screen, then click Federal).
  2. Click the Investment Income dropdown, then click Sold personal items.
  3. Enter your sale details, and check the box This was a collectible. 
    • If you have already entered a different sale, you will need to click Add Sale.
Income related to business activities:
To enter or review information for Federal Schedule C (Form 1040):
  1. In your TaxAct return, click Federal (on smaller devices, click in the top left corner of your screen, then click Federal).
  2. Click the Business Income dropdown, then click Business income or loss from a sole proprietorship.
  3. Click + Add Schedule C to create a new copy of the form, or click Edit to edit a form already created (desktop program: click Review instead of Edit).
  4. Enter or update your information using the interview process.
  5. In the income portion of the interview process, select 1099-K from the list and enter the details there. 
  6. Continue through the remaining steps to finish adding/updating your business income.
Income related to rental or royalty activities:
To enter or review information for Schedule E (Form 1040):
  1. In your TaxAct return, click Federal (on smaller devices, click in the top left corner of your screen, then click Federal).
  2. Click the Rent or Royalty Income dropdown, then click Real estate rental income or Royalties.
  3. Click + Add Schedule E Pg 1 - Rental/Royalty to create a new copy of the form or click Edit to edit a form already created (desktop program: click Review instead of Edit).
  4. Continue with the interview process to enter your information.
  5. On the Rental Income - Form 1099-K page, click Yes, then enter the Form 1099-K information.
  6. Continue through the remaining steps to finish adding/updating your rental/royalty income.
Income related to farming activities:
To enter or review information for Federal Schedule F (Form 1040):
  1. In your TaxAct return, click Federal (on smaller devices, click in the top left corner of your screen, then click Federal).
  2. Click the Business Income dropdown, then click Farming income or loss.
  3. Click + Add Schedule F to create a new copy of the form, or click Edit to edit a form already created (desktop program: click Review instead of Edit).
  4. Continue with the interview process to enter your information
  5. On the Farm Income page, click Yes. 
  6. On the Farm Income - Form 1099-K page, click Yes, then enter the Form 1099-K information. 
  7. Continue through the remaining steps to finish adding/updating your farming income.
Income related to activity not engaged for profit (Hobby):
To enter hobby income and expenses in the TaxAct return:
  1. In your TaxAct return, click Federal (on smaller devices, click in the top left corner of your screen, then click Federal).
  2. Click the Other Income dropdown, then click Activities not for profit.
  3. Enter the portion of income reported on Form 1099-K that is for activities not engaged in for profit.
 
Note that any link in the information above is updated each year automatically and will take you to the most recent version of the webpage or document at the time it is accessed.