Get your taxes done using TurboTax

They should not have sent you a 1099-NEC for this payment, but they are not likely to change this in time for you to file. 

First, you will need to get rid of the forms that are treating this as a business.

If you are using TurboTax Online:

1. From inside the return, scroll down to Tax Tools on the bottom of the left side menu.
2. Select Tools.
3. Click on Delete a form (third on the list at the bottom of the screen).
4. Find Form 1099-NEC on the list of forms.
5. Click Delete to the right.
6. Confirm your Delete.
7. Find Schedule C on the list of forms.
8. Click Delete to the right.
9. Confirm your Delete.
10. Click Continue in the lower right. 

Click Continue with my return.

1. If you are using the Desktop version (disc or download):
2. Click Forms toward the upper right corner. 
3. Find Form 1099-NEC on the list on the left.
4. Highlight it, then click Delete in the lower left corner of the reading pane.
5. Find Schedule C on the list on the left.
6. Highlight it, then click Delete in the lower left corner of the reading pane.
7. Click on Step by Step in the upper right corner to return to the interview.

Now enter it this way:

1. Select Federal on the left side menu.
2. Select Income and Expenses toward upper left.
3. Expand/ scroll down the list and find the section called, Less Common Income.
4. Scroll all the way down and select Miscellaneous Income, 1099-A, 1099-C.
5. Select Other reportable income.
6. Answer the first question Yes.
7. Enter COBRA refund as the description and amount on this page, click Continue. 
8. Click Add another income item.
9. Enter COBRA refund not taxable as the description and the same amount as a negative number on this page, click Continue.