Form(s) 1099-K

If, for tax year 2025, you received a Form(s) 1099-K that shows payments that were included in error (for example, money for gifts or reimbursements) or for personal items that you sold at a loss (for example, an old refrigerator), enter the amount that was included in error or for personal items sold at a loss in the entry space at the top of Schedule 1.

If the entire amount reported to you on Form(s) 1099-K was in error or for personal items sold at a loss, enter the total amount from Form(s) 1099-K, box 1(a), in the entry space at the top of Schedule 1.

If only some of the amount reported to you on Form(s) 1099-K in box 1(a) was in error or for personal items sold at a loss, only enter the amount that was in error or for personal items sold at a loss in the entry space at the top of Schedule 1. The remaining amounts reported to you on Form(s) 1099-K should be reported elsewhere on your return depending on the nature of the transactions.

If you received more than one incorrect Form(s) 1099-K, with amounts reported in error or for personal items sold at a loss, add the incorrect amounts together and enter the total incorrect amount in the entry space at the top of Schedule 1. The remaining amounts reported to you on Form(s) 1099-K in box 1(a) should be reported elsewhere on your return depending on the nature of the transactions.

If you received a Form 1099-K for a personal item that you sold at a gain, don’t report this amount in the entry space at the top of Schedule 1; instead, report it as you would report any other capital gain on Form 8949 and Schedule D.

For 2025, payment card companies, payment apps, and online marketplaces will be required to send you a Form 1099-K only if the amount of your business transactions during the year is more than $20,000 and the total number of your transactions is more than 200.

Example–Incorrect Form 1099-K.

You received a Form 1099-K that incorrectly showed $800 of payments to you in box 1(a). You would enter $800 in the entry space at the top of Schedule 1.

Example–Personal item sold at a loss.

You bought a couch for $1,000 and sold it through a third-party vendor for $700, which was reported in box 1(a) of your Form 1099-K. You would enter $700 in the entry space at the top of Schedule 1.

Example–Personal items sold at a loss and a gain.

In addition to selling your couch for $700, you also sold a handbag that you bought for $800 and sold for $1,200. Your Form 1099-K shows $1,900 in box 1(a). You would enter $700 in the entry space at the top of Schedule 1 for your loss on selling the couch, and the remaining $400 of gain from the sale of the handbag would be reported as capital gain on Form 8949 and Schedule D.

Example–Multiple incorrect Form(s) 1099-K.

You received a Form 1099-K that incorrectly showed $800 of payments to you in box 1(a). You also received a Form 1099-K that reported $6,000 in box 1(a) but $700 of that amount was reported in error. You would enter $1,500 in the entry space at the top of Schedule 1. The remaining $5,300 should be reported elsewhere on your return depending on the nature of the transactions.