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Drake Tax will automatically complete line 24z with the same amount to offset the transaction with zero effect on the return. Other Federal Withholding from Form 1099-K can be entered on screen 5, line 25c. Only the amount entered flows to the Federal Withholding worksheet.
Note: The State of New Jersey requires filing 1099 forms if the amount paid or credited is $1,000 or more in a calendar year or if any state income tax was withheld from the payment.
Report on Schedule 1 (Form 1040) Enter the Form 1099-K gross payment amount (Box 1a) on Part I Line 8z Other Income: Form 1099-K Personal Item Sold at a Loss, $21,000 Offset the Form 1099-K gross payment amount (Box 1a) on Part II Line 24z Other Adjustments: Form 1099-K Personal Item Sold at a Loss $21,000
Form 1099-K is used by third-party settlement organizations (TPSOs) to report the payment transactions they process for retailers or other third parties. If you have a Virginia mailing address, TPSOs are required to send you a Form 1099-K when they pay $600 or more to you in the previous calendar year.
HOME screen (for sale of a personal residence) 4797 screen (for sale of a business property), or on the 4562 screen when used to generate Form 4797 (on either screen, select the 1099-S option).

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16663: 1099 Payments - 1099-MISC or 1099-NEC (DAS) Go to Payables Payments 1099 Payments. Select a vendor and then click New. In the All Payments tab, select either the 1099-MISC or 1099-NEC from the Form drop menu. Select the applicable Payment Type from the drop menu. If this is an ATF payment, check ATF.
Submit Copy A to the IRS with Form 1096, which reports all 1099 forms issued to contractors, and the total dollar amount of payments. Send Copy 1 to your states Department of Revenue. Provide Copy B to the recipient (the contractor).

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