It's not wrong. They paid you $228 and the form shows it. However, that wasn't income to you so you don't owe taxes on it.
The easiest way to handle it is to enter the 1099-NEC as income and then enter a matching expense for the supplies that you bought. That creates a schedule C for your tax return that reports the income to the IRS but also shows that you don't owe taxes on it.
The downside to that is it requires you to buy a higher version of TurboTax which you don't have to do unless you have other self-employment income (which, if you do, you can skip the rest of this). In order to avoid that enter the 1099-NEC just as you have received it for $228. On the third screen of the 1099-NEC entry form tick the box that says "This is not money earned as an employee or a self-employed individual. It is from a sporadic activity or a hobby (This is not common)."
Now you have the money entered on your tax return and the IRS will see it and not wonder where it is. But it is still being taxed.
To fix that you go all the way to the bottom of the 'Wages and Income' section to 'Less Common Income' and click on the bottom box that says 'Miscellaneous income'. On the next screen, all the way at the bottom, it says 'Other Reportable Income'. Click that.
The description is "Reimbursement for Supplies" and the income amount is the negative of the amount on your 1099-NEC (-228). That removes the taxable amount from your return and you're all set.
@paolasilvestre
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