Please view this Turbo Tax link, for a solution to this. The answer to your question is yes you need to report it but in the link, there is a workaround to exclude the income. Here is how to report according to Hal_Al, one of our esteemed super users.
- "Federal Taxes tab (Personal in Home & Business)
- Wages & Income
- Scroll down to less Common Income
- Misc Income, 1099-A, 1099-C
- On the next screen, choose – Other reportable income
- On the next screen, click yes
- On the next screen, you'll get blanks to enter the amount and a description. It will go on line 8 of Schedule 1 as "Other Income". Suggestion for description: erroneous income on 1099K
- When that's done, do it again (a 2nd entry). This time make it a negative entry; put a minus sign (-) in front of the amount. Suggestion for description: erroneous income on 1099K offset."
[Edited 02-18-2021|07:48 PM PST]
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