The fees are not taxable a they don't represent income. You can report the form 1099-Misc on your tax return and then enter a negative adjustment to Other Income to cancel it out. Or, you can just leave the 1099-Misc off of your tax return. If you do that, the IRS may assess taxes on it later, but you can get it removed by telling them that the receipt is not taxable.
You would report the form 1099-Misc in the Income and Expenses section of TurboTax, then Other Income, then Income from form 1099-MISC.
The offset entry would be as follows:
Go to the Income and Expenses section of TurboTax
- Choose Less Common Income
- Choose Miscellaneous Income, 1099-A, 1099-C
- Choose Other reportable Income
- Enter a description and the amount of your offset as a negative number
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