The gross on my 1099-K forms include transactions that were later refunded. Can I enter the total returns somewhere in turbotax?

[ColeenD3 · Accepted solution]

How is the income treated? Schedule C? Other income?

If it is a business, follow these steps. If it is other income, make another entry with a negative amount and describe it as refunds.

Go to Income & Expenses then continue to where you enter income and expenses for your business. Click Add income for this work then choose "Rebates/refunds paid. Report any income returned to customers”. "Learn more" by that options says this:

“This is money you received but then gave back to a customer—a refund for a returned item, a rebate, or a discount. This isn't considered income, but it does need to be reported on your taxes.”

Perfect. After doing this, when you go to Business Summary and click on Details by Income, it shows the amount you entered as “Returns and allowances” which is called rebates/refunds when you add it

[ickythus]

Yes, it was Schedule C. Thank you for the quick reply! I found it.

[SweetieJean]

Were they refunded in 2021, or in 2022?

[ickythus]

Income was both made and refunded 2021.