I would suggest deleting the 1099- K. of all the 1099-k info that you enter: EIN, payee name, amount, etc only the amount will shows up
i would enter through other income - gift reported on 1099-K $$$$
then another entry 1099-K for gift - nontaxable -$$$$
yes they will both appear on line 8z of schedule 1 and net to zero which is what you want
if you use the adjustment line for the 1099-K nothing shows up on your return so you'll likely get a notice from the iRS
my recommendation is only a suggestion because the IRS has provided no guidance on how to report 1099-Ks that do not represent income. you could still get a notice
