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Entering Form 1099-K Payment Card and Third Party Network Transactions in ProSeries

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Entering Form 1099-K Payment Card and Third Party Network Transactions in ProSeries

  • Entering Form 1099-K
  • Enter 1099-K
  • Enter 1099K
  • Enter 1099 K

What Does Form 1099-K Report?

A Form 1099-K includes the gross amount of all reportable payment transactions. A reportable payment transaction is defined as a payment card transaction or a third party network transaction.

  • Payment card transaction means any transaction in which a payment card, or any account number or other identifying data associated with a payment card, is accepted as payment.
  • Third party network transaction means any transaction that is settled through a third party payment network, but only after the total amount of such transactions exceeds $20,000 and the aggregate number of such transactions exceeds 200.

The gross amount of a reportable payment does not include any adjustments for credits, cash equivalents, discount amounts, fees, refunded amounts or any other amounts.  The dollar amount of each transaction is determined on the date of the transaction.

NOTE:  The minimum reporting thresholds of greater than $20,000 and more than 200 transactions apply only to payments settled through a third-party network; there is no threshold for payment card transactions.

Additional Information: https://www.irs.gov/Businesses/Understanding-Your-1099-K

Entering Form 1099-K in ProSeries

The line items requesting Form 1099-K amounts were eliminated beginning with tax year 2012.

Note: Beginning with tax year 2016, ProSeries has added a 1099-K entry worksheet to the 1040 module.  This worksheet can be linked to the appropriate schedule, and will streamline the entry process for payment card and third party network transactions.

If your client received any Form s 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
  • Schedule 1099-K (Form 1040)
  • Schedule C-EZ (Form 1040)
  • Schedule E (Form 1040)
  • Schedule F (Form 1040)

For tax year 2016; withholding amounts can be entered on the 1099-K worksheet and will flow to the appropriate line.

Tax years prior to 2016; If there is withholding associated with the 1099-K, include this amount as an Additional Payment in the Tax Payments Worksheet (1040), Part III of the Info Wks or Line 13f with a code of O (1120S) depending on how you want it to flow, Schedule J Part II Line 17 (1120).

See the Government Instructions for the Return type being filed for additional information.

Additional Information:

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