I see your problem more clearly now. My suggestion as to the best way to handle this is to first list the grant as a taxable grant under other income from the 1099-G and fill out the information requested. Then when that is complete and you are back at the summary of income page, scroll down to the bottom to where it shows "Less common income", click on "show more", and click on the bottom link for "other reportable income" and click on "Start".
The next screen will ask if there is any other taxable income so click "Yes". Enter the description along the lines of "1099-G received in error" or something similar, enter as a negative number (-1200 or similar whatever the amount is) the amount shown on the 1099-G at your name and click continue, then done.
The amount shown on the 1099-G will now have been entered as income and deducted as received in error. Your overall income summary should show the negative amount at the bottom.
@Jxu98
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