This income and returned income is reported in the Self-employed income and expenses section in TurboTax Online. Once you have entered the 1099-K income, you will see an option for Rebates/Refunds paid.
Type sch c
into the search bar. Hit enter and then use the Jump to sch c link to get to the Self-Employment Summary. If your business is set up already, click Edit next to your business. If it isn't set up, go through the business set-up screens so your business appears in the list.
Click on Add Income for this Work. Click on Other Self-employed Income and enter the amount from the 1099-K. Then click on Add Income from this Work again. This time, you will see the option for Rebates/Refunds paid.
