Thank you for the solution. Just for clarification, TurboTax Premier says this under "What to do with your Form 1099-K - We don't need to create a separate entry for your 1099-K in TurboTax. That's because your 1099-K income should already be included in other income, such as your self-employment or rental income".
So, I am thinking that Amazon sellers need to make sure that their Schedule C income is at least as high as what the Amazon 1099-K amount is. Then we can deduct the withheld marketplace taxes as you proposed.
Any comments welcome!
