After entering your 1099-NEC, you will encounter a screen titled "Does one of these uncommon situations apply". Check the box "This is not money earned as an employee or self employed individual; it is from sporadic activity or hobby".
Checking that box will put the income on line 8z of Schedule 1 as "other income on a 1099-NEC"
Q. How should we report this given that he has a 1099nec to report.
A. TT will enter the description "other income on a 1099-NEC" on line 8z. That tells the IRS that you have reported the 1099-NEC.
Q. If he reports as sporadic income then how do you deal with 1099nec?
A. A 1099-NEC reported as anything other than self employment is a red flag at the IRS. But $632 is a pretty small flag.
You say he doesn't plan to do this in the future, but you don't say whether he did it in the recent past. If writing insurance is his regular line of work, Schedule C is the more appropriated option.
