You can report the income and add an expense or deduction for the same amount to cancel it out.
When you report it in TurboTax, indicate that it isn't part of your main job and that it won't recur and it will show up as Other Income on your tax return. Then, follow these instructions to enter a negative adjustment to cancel it out:
- 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 adjustment as a negative number
You could also just not report it, but then you may get an assessment from the IRS down the road for additional tax and you will have to explain what happened to get it reversed.
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