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Screen 1099K - Payment Card and Third Party Network Transactions
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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.note
- Fields with a plus sign (+) at the end of the field name aren't used 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 transfers to these fields from the Source Data Entry tool.
- Fields with an asterisk (*) at the end of the field name are only for the1099Kscreen in the Income folder. Some other fields are only for the1099Kscreen in certain activity folders. Any data in shaded fields will be ignored.
- If the Form 1099-K includes different types of income that would be reported on different lines of the return, use a separate unit of Screen 1099K to enter each type of income.
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
State
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.
note
This field is only available for the
1099K
screen in the Income folder.Report income on Schedule C as Gross receipts (Default is Schedule C Other income)
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.note
This field is only available for the
1099K
screen in the Business folder.Report income on Schedule F as (Default is Schedule F Other income)
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 |
note
This field is only available for the
1099K
screen in the Farm folder.Report income on Form 4835 as income from production (Default is Form 4835 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.note
This field is only available for the
1099K
screen in the Farm Rental folder.Personal Item(s) sold (Use Schedule for detail statement on Screen B&D to enter capital gains or report personal losses on Form 8949 with code L)
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.note
This field is only available for the
1099K
screen in the Income folder.Basis of personal item(s) sold at a loss (If not reporting personal loss on Form 8949 with code L)
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 inBox 1aof the1099Kscreen.
- UltraTax CS 2024: in the field at the beginning of Schedule 1 (Form 1040) up to the amount of proceeds entered inBox 1aof the1099Kscreen.
note
This field is only available for the
1099K
screen in the Income folder.1099-K received in error
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).
note
This field is only available for the
1099K
screen in the Income folder.Federal/State applied to Box 1a
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.note
This field is only available for the
1099K
screen in the Income folder.Federal code applied to Box 1a
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 |
note
- This field is only available for the1099Kscreen in the Income folder.
- Items entered with code 12 will be included in Form 2555 calculations, when Form 2555 is calculating.
- Items entered with code 10 aren't included in the calculations of self-employment income regardless of the self-employment code entered in theSubject to self employment tax*field.
- Utah: If state withholding is entered with a Utah postal code, the data with transfer to Utah Schedule TC-40W.
Subject to self-employment tax
Enter the code to specify whether the miscellaneous income is subject to self-employment tax.
note
This field is only available for the 1099K screen in the Income folder.
Form 2555 allocation code
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.Delete on next year's proforma
Enter
X
in this field to delete the content from this screen during next year's proforma.note
If data transferred to this screen through the Source Data Entry tool, related screen data should be reviewed for duplicate proforma'd information. For example, if the
1099K
screen is linked to Schedule C, review the descriptions proforma'd to the Gross receipts and sales statement or Other income statement in the C
screen for duplicate entries. Don't enter amounts for identical items in both places, as the amount of gross receipts or other income will be overstated.1099-K Facsimile
Fields not used in tax preparation
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.
Payer's address
Enter the payer's address as reported on Form 1099-K. This information is required for some state products.
Gross amount of payment card/third party network transactions
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. |
Federal income tax withheld
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.
State/State Identification no./State tax withheld
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.