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Fwiw, Drake doesn't even have a place to enter 1099K data. For my husband's Sch C, I just entered the gross sales that includes the credit card payments.

I tried to use the IRIS system.. could not even get in the system. I use efilemyforms.com which is so user friendly

After entering all the necessary data for the payor (Main Information Worksheet) and payee (1099XXX Input), click on Check Return tab on top.. If all is good, click on E-File tab on top. If there are no errors to clear, close return. Go to E-File Manager, select return to e-file and Transmit. Within the program is a very detailed Help file specific to the work.

CA cannot tax retirement income if the recipient is a non-resident. They lost that case a long time ago. If your client was a part year resident, that might be a different story. Remove the CA in the state box and delete the CA 540NR. Your client does not have a filing requirement. Tom Longview, TX

I suffer from auditophobia (I just made that up). I enter my sales from my accounting software and I enter the 1099s and I have a line item under my sales for "less 1099s received" as a negative number. It is only a couple extra key strokes but I can show that I have included any 1099s in my tax return if I am ever audited. Hey, I never want to have to ask one of you to represent me at audit and then have you think I don't keep good books and records. Tom Longview, TX

I agree with Lee and the attorney. Fill out the 8857 for the last 6 years they filed married filing joint. Better to have it and not need it then to need it and not have it.

I've never entered either of those forms. I just enter sales from my accounting software directly on Sch C. Less work.

I got one as well from Block as expected and properly recording the CC sales. ATX 1099K form entry and linked to my Sch. C. Just like a 1099NEC, just a different form entry screen. The trick this year is to know if it is legit reportable income or personal in nature (like paying friends for personal expenses or selling stuff on eBay for a personal loss). Tom Longview, TX

I agree with Terry, Ignoring it might trigger a CP 2000 notice. The IRS has good guidance on how to handle 1099 K: https://www.irs.gov/businesses/what-to-do-with-form-1099-k

My K1s are normally 5-7 pages, but I do use print page often, like for depreciation reports.

Exactly what Tom said above. Drake is only generating the CA540 because of that "CA" you've entered. If the resident state picks up the data from the federal input, it should show up properly on the resident state return, but if it doesn't then you may have to make an entry for the state income to be correctly reported.

My husband has a Sch C biz and was correctly issued one from Block (Square). I didn't keep the email because it didn't apply in his circumstance, but there were lower thresholds shown depending on the recipient's state that may be the reason your client received one from E-bay.

If you are using ATX, you would enter the 1099K, assign it to other income, and at the top of Schedule 1 there is a box for amounts that are in error on the 1099K or for personal sales with losses. At least I think that is the wording. But in any case, enter the 1099K and then put the $1,300 in that box and it should go away. I have not had to do this yet so please let me know if it works as advertised. @jklcpa if this does work, you may want to pin the instructions for this year as it is new and I think we are going to see this question come up a lot during the tax season. Your call, just a thought. Tom Longview, TX

I was sceptical, but case laws says that is correct; a transfer of an appreciated asset is not an assignment of income. HAROLD N. SHELDON, 62 TC 96, 04/25/1974 "An operating farmer who donates crops to a charity before he recognizes income from them is not required to include the value of the crops in his income.2 The farmer has merely assigned to the charity a property asset which has appreciated in value. Neither the harvesting nor the donative transfer of the product of his capital and services is a taxable event. See Campbell v. Prothro, 209 F.2d 331 (C.A. 5, 1954); Stuart A. Rogers, 38 T.C. 785 (1962); and White v. Brodrick, 104 F.Supp. 213 (D.Kan. 1952), appeal dismissed per curiam 198 F.2d 751 (C.A. 10, 1952); cf. Tatum v. Commissioner, 400 F.2d 242, 246-247 (C.A. 5, 1968), affirming"

I jumped through all those hoops last year so I am registered with IRIS. Earlier in January, no problems, took a few minutes and that was it. Drake , however, does not create a .txt file to upload. But, with only one or two to do, manual entry isn't bad. I did manage to get through just a few minutes ago and got the last one filed. This one had 10 forms so manual entry was a bit of a pain. I wonder if the IRS will charge the late penalty for one day? I have no idea how to prove I have been trying for the last two days.

In comparison if you use a "pay to play" website it's pretty easy. In order to use IRIS you have to jump thru time consuming hoops just to get access. One might think that we're being deliberately encouraged to use "pay to play" websites