Payment issued by insurance company on a 1099-K

[taxxman02]

Client received a 1099-K from PayPal that was for a payment issued by his insurance company for damage caused by a tree falling on his home. Pro-series is treating this as if it was a payment made for a purchase or business transaction. Is there a way to record the money then pull it back out? I found one article that say's on Sch 1 put the figure in and it cancel's, tried that but it didn't work. Any and all feedback is welcome.

[Just-Lisa-Now-]

If you scroll down to the bottom of the 1099K worksheet, arent there some other choices under reconciliation?

[BobKamman]

Yes, and when you enter the number there it shows up at the top of Schedule 1 as having been included in error.  

[rbynaker]

This doesn't pass my sniff test.  Are insurance companies reimbursing people via Paypal now?

[BobKamman]

See your doctor after April 15.  Might be a case of creeping fuddy-duddyism.

"PayPal’s comprehensive online payments solution is a way to help accelerate digital transformation. PayPal can help insurers deliver an intuitive compensation experience that meets modern policyholders’ expectations for convenience, security, and speed, all while streamlining operations and reducing overhead costs."

https://www.paypal.com/us/brc/article/insurance-payouts