How treat paypal 1099K amount that was not income

[JohnW15]

If the amounts on the 1099-K don't represent income, just don't enter info from the form, anywhere on your return.  Ignore the 1099-K.

Form 1099-K, like all 1099 Forms, is an information return. If it doesn't reflect income, you don't need to account for it on your tax return.