You will not report the refundable deposits as income on your return this year. If any portion of the deposits you receive do not get refunded to your tenants, you will report that portion in the year in which that event occurs.
The 1099-K from HomeAway is just reporting the amount of the credit card transactions they processed. You need to deduct the deposits you received from the total "income" they are reporting and enter the net amount as "rents received". Be sure to retain all your rental records that support the reductions you make.
