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I tried the method listed above, however, I notice that despite creating the 2nd 1099-MISC with all the same info, except the settlement amount as negative, my federal and state refund remain exactly the same, as if I'd never created the negative version. However, even by getting the Total to $0, the 1099-MISC seems to still be getting treated as taxable. If I don't enter the 1099-MISC info at all, in order to get $0 for Total 1099-MISC, I see that the refunds are far higher.

I'm not sure the work-arounds are working. We've already spent several hours and several days trying to resolve this.

Is this something that just cannot be done in Turbo Tax?