Retirement tax questions

The IRS expects to see the amount from the 1099-K on your return somewhere so the entire amount reported must be entered on the return.   Failure for the IRS to see this amount on your return will win you an IRS CP 2000 notice in a couple of years for under reported income.  

 

How much will be taxable after expenses or cost basis is applied   is a totally different  conversation discussed in the other post.