In 2022 I applied for a matching grant from my locality for some historical preservation work. I paid $26K for the entire cost of the work and then they granted me $13,000 to match 50% of the cost. They sent me a 1099-NEC for $13,000 and the form itself is just free text with no boxes. In the free text they just say 'Direct Sales Indictor" and "Federal Income Tax Withheld" but with no other information. No taxes appear to have been withheld despite what it says. I don't believe I should be required to pay self-employment on this grant. Should they have reported this income in some other way? How should I report this income in Turbo?
