It is income now. If the 1099-K was issued to your business you need to include it in income. The IRS has seen it and they will expect it to be there.
You can then enter an expense or series of expenses that relate what you did with the money. If you paid it to one person or group then you should issue a 1099-MISC or 1099-NEC to them for the money that you paid out.
If you paid it out to a bunch of different people and none of them received more than $600 then you can just make note of who you paid when and be done. Either way, once you have finished with all the hassle it will be no increase to your taxable income.
@PTGeek
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