@nath762987 , I would suggest reporting 1099-MISC and for the time being ignore the 1099-K -- am assuming here that (a) you are US citizen/ Resident (Green Card )/Resident for tax purposes and (b) that 1099-K back up details show that the money was transferred either by you to Paypal or by Distrokid to Paypal. If the IRS ever questions this "un-reported 1099-K, you can provide the documentation to show the "audit trail ". Not to worry you would be fine.
BTW -- the Distrokid payment is license fees for use of your intellectual property or actual performance --- please make sure that TurboTax has all the details from the boxes of 1099-MISC.
pk
