Thank you. I see that the state of Montana does make these grants to private land owners. However, you will note that every other potential applicant is a government body or a non-profit entity.
So long as the agency gives you a 1099-NEC, TurboTax (and the IRS) will think that the agency has identified you as a for-profit or non-profit operation. You might call the program manager at that agency and ask why they gave you a 1099-NEC instead of a 1099-MISC (which would have been appropriate for a private landowner). It's possible that it never occurred to them that this might be a problem.
If they will rescind the 1099-NEC and issue a 1099-MISC, that would be great, because you can enter the 1099-MISC without seeming to be a business.
Otherwise, the things you state are true - if you are a business, then your tax rate will appear to be over 30%, because you are charged 15.7% in unemployment taxes.
Talk to the program manager first about getting that 1099-NEC changed to a 1099-MISC.
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