If the amount reported in box 1 is not taxable, then you need to enter it as reported in box 1 when you enter your W-2 form in TurboTax. Then, you will enter a negative amount equal to the non-taxable amount reported in box 1 of your W-2 form as "Other Income", along with a note referencing "Notice 2014-7." The two amounts will cancel each other out so the net amount taxable will be zero.
You can make that adjusting entry in TurboTax 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
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