The Form 1099-K shows the gross amount of all reportable payment transactions from payment card transaction or a third party network transaction.
For calendar years beginning after December 31, 2021, the reporting requirement for these transactions has changed from totals exceeding $20,000 to exceeding $600, regardless of the total number of transactions. See Form 1099-K instructions for more information.
Entering a 1099-K for an individual return:
Beginning with tax year 2016, there is a 1099-K entry worksheet to the 1040 return that can be linked to the appropriate schedule, and will streamline the entry process for payment card and third-party network transactions.
To enter the 1099-K for a 1040 return in ProSeries 2016 or newer:
- Press F6 to open the Open Forms window.
- Type 99k and select OK.
- Enter the filer's name and choose Select.
- Enter box 1-8 as show on the 1099-K received.
- In box 1 double-click on the line for Schedule C, Schedule E, or Schedule F to select the business schedule to report the transactions on. If none of those schedules apply, check the Other Income box to flow the income to the 1040 as Other Income.
To enter the 1099-K for a 1040 return in ProSeries 2015 or prior:
- Open the business schedule that the 1099-K income is for. (Schedule C, Schedule E, or Schedule F).
- Adjust the gross receipts by any amount not already included in gross receipts on the business schedule.
- If there's any federal income tax withholding, enter this on the Tax Payments Worksheet as an additional payment.
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.