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Federal input screens

Screen 1099K - Payment Card and Third Party Network Transactions

The IRS has a website with many FAQs regarding the reporting of Form(s) 1099-K received by a taxpayer. Visit the IRS website to see different scenarios for why a Form 1099-K may have been received and how to report such income on a Form 1040 individual income tax return.

Overview

Use this screen to record miscellaneous income information from Form 1099-K. The information entered here transfers to the related 1040 forms and schedules. For example, the federal income tax withheld information transfers to the Form 1040, Page 2 line that reports federal income tax withheld from Forms 1099. When using the
1099K
 screen in the Income folder, all of the federal and state use codes in the
1099K
 screen are also available in the Other Income statement in the
Income
 screen, located in the Income folder. Data may be entered in the
1099K
 screen or in the Other Income statement in the
Income
 screen. Don't enter the same item in both places.
Source data entry
The UltraTax CS Source Data Entry tool lets you enter data on facsimile versions of forms your clients submit for the preparation of their tax returns. Once the facsimile forms are completed, you can export the data and transfer it into your client data files via the Data Sharing feature.

General Information

If you're processing a state return, enter a state postal code in this field for proper state processing.
Select F4 from this field to view a list of available state postal codes.
Enter X in this field to have amounts entered on the
1099K
 screen reported on the Gross receipts line of the Schedule C unit with which the
1099K
 screen is associated, instead of the Other income line.
Select F4 from this field to view a list of available lines from Schedule F to have amounts entered on the
1099K
 screen reported on. Select the line of the Schedule F unit with which the
1099K
 screen is associated to report the 1099-K income on that line instead of the Other income line. The following table lists the codes available.
Code
Description
1
Cash sales of items bought for resale
2
Cash sales of items raised
3
Accrual sales
4
Custom hire
5
Other income
Enter
X
 in this field to have amounts entered on the
1099K
 screen reported on the Income from production of livestock, produce, grains, and other crops line of the Form 4835 unit with which the
1099K
 screen is associated, instead of the Other income line.
Enter X to report this unit of the
1099K
 screen on the invoice. No amounts entered on this unit of the
1099K
 screen will be used in calculations of the tax return. If this box is marked, amounts used in calculations for the tax return should be entered in the Schedule for detail statement on the
B&D
 screen.
For a Form 1099-K received for the sale of a personal item or items sold at a loss, enter the basis of the item(s) in this field. The amount of basis will be reported:
  • UltraTax CS 2023: as an adjustment to income on Schedule 1 (Form 1040) up to the amount of proceeds entered in
    Box 1a
     of the
    1099K
     screen.
  • UltraTax CS 2024: in the field at the beginning of Schedule 1 (Form 1040) up to the amount of proceeds entered in
    Box 1a
     of the
    1099K
     screen.
Enter
X
 if the Form 1099-K was received in error by the taxpayer. The proceeds entered in
Box 1a
 will be reported:
  • UltraTax CS 2023: on Schedule 1 (Form 1040) as Other income and an adjustment for the same amount will be reported on Schedule 1 (Form 1040) as an Other adjustment, per IRS instructions.
  • UltraTax CS 2024: in the field at the beginning of Schedule 1 (Form 1040).
Use this field only if you're preparing multiple state returns. For multiple state returns, add multiple units of the
1099K
 screen as necessary to enter miscellaneous income separately by state; enter a different postal code in the
State
 field for each unit of the
1099K
 screen. Enter
S
 in the
Federal/State*
 field for all but 1 of the multiple 1099K screen units. The federal application disregards entries coded S.
Enter the code in the field. The following table lists codes available.
Code
Description
1
Gambling income
2
State lottery
3
Bartering income
4
Miscellaneous
6
Investment income
8
Hobby income
10
Hshold employee inc not on W-2
12
Foreign employer compensation
21
Prizes and awards
Enter the code to specify whether the miscellaneous income is subject to self-employment tax.
This field is used to allocate the income between the U.S. and foreign earned income (reported on Form 2555 Allocation Worksheet). Income calculated as foreign earned during the assignment is used to calculate the Form 2555 exclusion. Foreign income earned before, during, and after the assignment is reported, less any exclusion, by Form 1116 as eligible for the foreign tax credit. The application uses this activity's allocation code to allocate any related self-employment income. Additional data entry is required on the
1116
,
2555
, and
2555-2
screens to report this activity on Forms 1116 and/or 2555.
Enter
X
 in this field to delete the content from this screen during next year's proforma.

1099-K Facsimile

The fields that have a plus sign (+) at the end of the field name aren't use in the tax return, but are available for the Data Mining feature. You don't need to enter information in fields marked with a plus sign, unless the data in the field will be used for data mining purposes. Data will be shared to these fields from the Source Data Entry tool.
Enter the payer's address as reported on Form 1099-K. This information is required for some state products.
Data entered in this field is reported on the related form or schedule. The following table lists where the amount is reported on the form.
Form/Schedule
Line
Schedule 1 (Form 1040)
Various lines depending on if the
Personal item(s) sold
 field is marked, the
Basis of personal item(s) sold at a loss
 field has an amount entered, the
1099-K received in error
 field is marked, or which code, if any, is selected in the
Federal code Applied to Box 1a
 field.
Schedule C
Line 6, Other income, unless the
Report income on Schedule C as Gross receipts
 field is marked.
Schedule E, Page 1
Line 3, Rents received
Schedule F
Line 8, Other income, unless a different line for Schedule F is selected in the
Report income on Schedule F
 as field.
Form 4835
Line 6, Other income unless the
Report income on Form 4835 as income from Production
 field is marked.
Data entered in this field will be included in the total federal income tax withheld from Form(s) 1099 line of Form 1040, page 2.
Enter the postal code, state payer's identification number, and state withholding amount in these fields. State withholding amounts entered here transfer to Schedule A, line 5. Several states use this information to complete electronic filing records, withholding worksheets, and records for 2-dimensional (2D) bar code purposes.

This article applies to:

  • Product: UltraTax CS
  • Return type: 1040 Individual
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