Discounts or cash back rewards are not taxable. To exclude them when they are included on Form 1099-K, follow these steps:
- Go to Form 1099-K in your tax return. To return to this area of your return in TurboTax Online, follow these steps:
- From the left menu, click on Federal
- Under the Income & Expenses tab, scroll down to Self-employment income & expenses and click Edit/Add
- Click Edit next to the net income
- Under Income, scroll down to click the button on the left Add income for this line of work
- Under Common Income, select the radio button for Other self-employed income, includes 1099-K, cash, and checks, scroll down and select Continue
- At Tell us about the other self-employed income for your Education work, where you previously entered Form 1099-K, add another line with the applicable description of a subtraction. For example, Less Free Product Trials, or Less Cash Back Rewards.
- Enter the amount as a negative number by starting the entry with "-" and click Continue.
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