While much of the advice I've received here is helpful the single most CRITICAL point was never mentioned.
I had to find it myself. I wish I could claim brilliance but it was actually desperation. Just start clicking stuff and hope it works.
The 1099-K MUST be listed for "self-employment income". But YOU missed the most important item. On the next screen you must check the box that says:
"This amount in box 1a in incorrect"
Only then will you get a drop down that allows you to enter the amount that is related to personal use.
Here is the problem for the layman. The amount on the 1099 is NOT incorrect. It is not ACCURATE for business related revenue but it is NOT incorrect. It would never have occurred to me to check that box. The software screen needs an expansion of instructions or a pop up help window to alert the user of the context of the box.
I did not know the correct specific question to ask to get the answer to the broader problem.
Without checking that box and entering the personal amount the program has NO OTHER WAY to direct the revenues away from the business calculations.
Go back to my original question. I have been screwing around with this for 10 days on and off because there is no way to know from the "surface" of the screen instructions to check a box that is 100% counterintuitive.
Understand that the next logical step for an incorrect 1099 is to request a revised from from the source. In this case that is a fruitless futile operation because we all know the 1099 is in fact 100% correct.
You need to take this up with your programmers and insert additional instructions and help items into the program.
