The solution offered by @TeresaM of entering a negative adjustment to income would be the correct solution. TurboTax may come up with a more expeditious way of entering it in the program, but the results will likely be the same. So, you can enter a negative adjustment to income to cancel out the income entered from your 1099-K as follows:
- Choose the Federal option on your left menu bar
- Choose Wages & Income
- Find Less Common Income in the list of income sources
- Use the Show More option to expand the choices and choose Miscellaneous Income, 1099-A, 1099-C
- Choose the Other Reportable Income option and find Other Taxable Income in that section
- Enter a description for your adjustment and the amount as a negative number
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