I'm not sure about it not be taxable, at least for federal tax purposes. In any case you need to report it in the Wages and Income section, then Other Common Income, then Income from Form 1099-MISC. To have it not be considered self-employment income, you may need to indicate that it wasn't earned in the previous or next year, was not associated with your job and you did not have a profit motive associated with it.
To exclude the income from taxation, assuming you know that to be true, you need to enter a negative entry to "Other Income" to cancel out the income as follows:
1. From the Federal menu in TurboTax find Wages and Income
2. Find Less Common Income
3. Choose Miscellaneous Income, 1099-A, 1099-C
4. Choose Other Reportable Income
5. Enter a description of the adjustment and the amount as a negative number
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
