I have income thru Etsy on a 1099k. They include sales tax collected and paid. Do I break this figure out and show it anywhere on my tax return?

Yes.  You would enter all of the income reported on the Form 1099-k, then claim a business expense for the amount of sales tax collected and paid.  Doing this, you are not including the sales tax as part of your income.

Enter the sales tax in the Taxes and Licenses expense category for the Schedule C.