Enter the 1099-NECs exactly as you received them - the IRS got a copy of the form that you received and will be expecting you to report the same figures on your return.
The amount reported in Box 1 of the 1099-NEC will be subject to income tax and self-employment tax. See How do i enter my Minister's Housing Allowance that is associated with a 1099 Misc
Since the housing allowance is exempt from income tax (not employment tax), you'll have to make an adjusting entry to remove the housing amount from your taxable income.
To enter the adjustment:
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Go to Less Common Income, Miscellaneous Income and Other reportable income. Enter "Lawsuit settlement" in the Search Box and Select "Jump to lawsuit settlement" "to get to this screen ("Lawsuit settlement" is just an effective search term to get to this interview screen)
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Continue to the screen "Other Taxable Income". Enter the description as "Housing Allowance Reported Elsewhere" and the amount as a negative number. Entering "-$ XXXX" here will offset the housing allowance amount included on the Form 1099-NEC.
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A corresponding negative amount will be entered on line 8 of Schedule 1.
