If you're reporting the 1099-Misc income as a one-time payment under Miscellaneous Income, you don't claim expenses against it. Basically, you paid expenses and the 1099-Misc repaid you for them.
If this applies to you, in the 1099-Misc section, be sure to indicate that this 'did not involve work like your main job' with 'no intent to earn money' to have it reported as miscellaneous income.
However, if you are a self-employed consultant (or similar), you could report the income and expenses both on Schedule C. Type 'Schedule C' in the Search area, and 'Jump to schedule c' to get to this section.
Here's more info on Form 1099-Misc.
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