This article is for information only and is not tax advice.
This article explains what Form 1099-K is, when the income on it is reportable, and how to add that income in Sprintax Returns. You do not enter Form 1099-K itself in Sprintax Returns. You add the profit or income you earned, which may be included in the amounts on the form.
What is Form 1099-K?
Form 1099-K reports the payments you received for goods or services during the year. Payment card companies, payment apps and online marketplaces issue it. The issuer must send you a copy by January 31, 2027, for payments you received in 2026.
You can receive more than one Form 1099-K if you accept payments on different platforms. Payment card companies send the form no matter how many payments you received or how much they were for.
Payment apps and online marketplaces report payments for goods or services only when the payments are more than $20,000 and in more than 200 transactions. You can also receive a form for smaller amounts.
Do I have to report income if I do not receive Form 1099-K?
Yes. You must report all taxable income whether or not you receive Form 1099-K. The form is an information report. It does not decide what is taxable.
When is the income on Form 1099-K reportable?
The amount on Form 1099-K is the gross amount of the payments you received. It is not the same as your profit. Only your profit or income is taxable. The table shows the most common situations.
| Situation | Is it reportable? |
|---|---|
| You sold goods or services as a business or side job, including gig work such as driving for a rideshare company | Yes. Report your income from the work. The IRS treats you as a sole proprietor for this income. |
| You sold a personal item online for more than you paid for it | Yes. Report the profit. Work it out by subtracting what you paid from what you received. |
| You sold a personal item online for less than you paid for it, such as used clothing or furniture | No. There is no profit and no taxable income, so you do not need to add anything in Sprintax Returns. You cannot deduct the loss. |
| You received money from friends or family, such as a gift, a shared meal or ride, or rent from a roommate | No. These payments are not taxable income. Payments like these should not be on Form 1099-K. |
| You received a Form 1099-K issued in error, such as a duplicate form or a form for someone else's account | No. Contact the issuer and ask for a corrected form that shows a zero amount. |
What if I sold a personal item at a loss?
If you sold a personal item for less than you paid for it, you earned no profit. You have no taxable income from the sale, so you do not need to report it in Sprintax Returns. The IRS does not allow you to deduct a loss on the sale of a personal item.
For example, you bought a coat for $200 and sold it online for $120. You received $120 and you receive a Form 1099-K that includes it. You made no profit, so you add nothing in Sprintax Returns.
What if I sold a personal item at a profit?
If you sold a personal item for more than you paid for it, the profit is taxable income. Subtract what you paid from what you received to work out the profit. Add the profit in Sprintax Returns as other income. Follow the steps in the next section.
Do I enter Form 1099-K in Sprintax Returns?
No. You do not need to enter Form 1099-K itself. You add the profit or income you earned, which may be reported on the form, as described in this article.
How do I add income reported on Form 1099-K in Sprintax Returns?
Add your self-employment income or Form 1099-K income in Step 3 (Let's talk money). The steps depend on whether you have other income.
Go to Step 3 (Let's talk money).
If you have no other income, select Letter from a Payer.
If you have other income, do not select Letter from a Payer. Select the income documents you have from the drop-down menu.
After you enter your income documents, go to the Other income section.
Select the income type Fees/Commissions and enter the profit or income you earned.
What should I do if the amount on my Form 1099-K is wrong?
Contact the issuer of the form and ask for a corrected Form 1099-K. The issuer is the filer named in the top left corner of the form. Do not contact the IRS, because the IRS cannot correct the form for you.
Add only the income you actually earned in Sprintax Returns. Keep your records of the sales and the original form. If you cannot get a corrected form, you can file your return without it.
What are the key facts about Form 1099-K?
| Question | Answer |
|---|---|
| What does Form 1099-K report? | The gross payments you received for goods or services through payment cards, payment apps and online marketplaces. |
| When must the issuer send me Form 1099-K for 2026? | By January 31, 2027. |
| Do I enter Form 1099-K in Sprintax Returns? | No. You add the profit or income you earned. |
| Do I report personal items sold at a loss? | No. There is no profit or taxable income, so you add nothing. |
| Do I report personal items sold at a profit? | Yes. Add the profit as other income. |
| Are gifts and money from friends or family taxable? | No. Contact the issuer if they appear on Form 1099-K. |
| Where do I add the income in Sprintax Returns? | In Step 3 (Let's talk money). Use Letter from a Payer if you have no other income. Otherwise, use the Other income section and the Fees/Commissions income type. |
| Who corrects a wrong Form 1099-K? | The issuer, not the IRS. |