It took a little time for me to figure it out as well but its there.
For those who already entered the 1099 form in to their return -
On the online version of filing, click on the "Federal" section of your return.
Then, click on the "Edit/Add" button of your 1099. One this window is open, click on the "Edit" button of your 1099 form (DO NOT CLICK the green Continue button, click EDIT next to your form)
Hit continue a few times as the information is already filled in from previously. You will arrive at a section for "Do any of these situations apply to you?" There is a checkbox for "I took out this money because of a qualified disaster (includes COVID-19)" Make sure you select that and follow the prompts.
I can see how totally deleting this 1099 and re-adding it will do the same exact thing, but this makes things a little easier if you already have your 1099 forms in there, like i did.
