Get your taxes done using TurboTax

If you receive a Form 1099-K reporting non-taxable payments (e.g. coupon redemption, cash rebates, casual sales of personal property at less than your cost), you can report it in the Other Reportable income interview.

Go to the interview as follows: Federal Tax > Income > Less Common Income > Miscellaneous Income > Other Reportable Income.

Enter the 1099-K amount and then make an equal, negative (offsetting) entry to reflect that the income is not taxable.

See example (from Home & Business):