For hobby and non-business (casual) sales of personal items reported on a 1099-K: 

Report the income and then enter an offsetting "expense"  for the costs of the goods you sold (which would include amounts paid to another party for those goods)
 

To report the income:  

If the 1099-K reports income that is not related to your main job or self-employment, enter the information as follows:  

• Enter the 1099-K in the Other Reportable Income  interview under  Income and Expenses > Less Common Income > Miscellaneous Income > Other Reportable Income > Other Taxable income 

• Or enter "other reportable income" in the Search Box and Select "Jump to other reportable income). These are NOT wages. 

• For "Description", enter "1099-K Receipts"  

• Enter the amount. 

• The income will be reported on line 8 of Form 1040 of your return (Other income from Schedule 1, Line 9).  

To enter the adjustment:   

• Enter the costs of the items you sold in the Other Reportable Income  interview also, as a negative number, under Income and Expenses > Less Common Income > Miscellaneous Income > Other Reportable Income >Other Taxable income 

• Or enter "other reportable income" in the Search Box and Select "Jump to other reportable income). These are NOT wages. 

• For "Description", enter "1099-K Costs"  

• Enter the amount as a negative number ("-$ XXXX). 

•  The offsetting amount will be reported on line 8 of Form 1040 of your return (Other income from Schedule 1, Line 9).  

Thank you! I should clarify. The payments were made to my account for items I sold for myself as well as another person. So I received all payments and then in return sent the money through paypal owed to the other person for that item that was sold. Would this still be done the same way?

Yes, the steps above work for this situation.  The negative amount would be for the outgoing costs you paid (even paying someone else).