Since, as you say, security deposits aren't taxable, enter your Form 1099-K information in TurboTax Online like this:
- If you don’t see 2022 TAXES in the left pane, select the dropdown to the right of Income & Expenses on the Hi, let’s keep working on your taxes! page and then select Let’s get started, Pick up where you left off, or Review/Edit.
- Otherwise, in the left pane, select Wages & Income
- Scroll down and select the Show more dropdown to the right of Other Common Income
- Select Start or Revisit to the right of Form 1099-K
- Answer Yes to the question, Did you get a 1099-K? (If you've already entered a Form 1099-K, select the Add a 1099-K box)
- Select Type it in myself on the How would you like to enter your 1099-K? page, then select Continue
- On the Choose which type of income your 1099-K is for page, select the bullet next to Other (can include any taxable income not reported elsewhere on your return) OR if the entire amount is incorrect
- On the Let's get the info from your 1099-K screen, enter all information from your 1099-K
- Select the box next to This amount in box 1a is too high or includes some personal transactions
- Enter the Form 1099-K amount related to the security deposit (all, if appropriate), then select Continue
- Select Continue on the Your 1099-K summary page
See Are security deposits taxable? In the TurboTax article Rental Real Estate and Taxes for relevant information.
