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Level 2
March 24, 2021
Question

My client received a 1099-K from Paypal for some hobby items he sold. It is for less than $1000. The client indicates he does not have a business. Where do I enter it?

  • March 24, 2021
  • 2 replies
  • 13 views
Do I enter on schedule C even though there is not a business?
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2 replies

Accountant-Man
Level 13
March 24, 2021

Does your client want to receive a Notice in 2022 indicating that they forgot to report $1,000 in sales and the tax is due on it, or do YOU want to PROACTIVELY help your client by reporting it and then removing it as taxable income, in order to prevent such Notice?

** I'm still a champion... of the world! Even without The Lounge.
qbteachmt
Level 15
March 24, 2021

Here's what you told us: "for some hobby items"

Which is sort of like being a business. It's not as if he sold his couch or waterbed.

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