Form 1099-K, Payment Card and Third Party Network Transactions
For 2023, third-party networks must issue Form 1099-K to taxpayers if they receive over $20,000 in payments through a third-party network or have over 200 transactions
This includes apps such as Venmo, Uber, Lyft, Cash App, PayPal, E-bay, etc.
Taxpayers must report Form 1099-K on their tax return as income if the funds were received for the sale of goods and services
If amounts on Form 1099-K are incorrect the taxpayer should contact the issuer
Follow the instructions below to correctly enter the 1099-K Statement:
Select Add Form.
Select Form 1099-K. Double-click to add the form.
If a joint return, choose New Taxpayer's or New Spouse's Occurrence.
Complete the 1099-K, filling in all applicable sections.
Linking Form 1099-NEC To SCH C
1099-K must be linked to the appropriate form either SCH C (profit or loss from a business), SCH E (supplemental income), or SCH F (profit or loss from farming). 1099-K's received for goods or services must be linked to SCH C.
Begin by adding the appropriate schedule to the tax return (SCH C, E, or F).
Navigate to the 1099-K. Select the Link to (1040, SCH C, E, or F) box in box 1a of Form 1099-K.
Select Choices from the Active Options Window.
Select the SCH you wish to link to. Double-click to link.
You can view the linked income on SCH C Line 1.
