State tax filing

To report this so it doesn't appear as a business, please do the following.

1. Sign in to your TurboTax account.
2. Click on Federal Taxes tab.
3. Choose Wages and Income.
4. Scroll down to Other Common Income
5. Select 1099 -NEC
6. Enter the 1099 NEC information'
7. Then it asks for the description of the income. Give it the proper description.
8. When you reach a page that says Does one of these uncommon situations apply? 
9. Select This is not money earned as an employee or self-employed individual, it is from a sporadic activity or hobby (this is not common).
10. This will then be taxed as common income and not business income.

Now according to the federal government under payments first responder guide, this payment isn't taxable so lets exclude this by;

1. Click on Federal Taxes tab.
2. Choose Wages and Income.
3. Scroll down to Less Common Income and click Start to to right of Miscellaneous Income, 1099-A, 1099-C.
4. Go to other reportable income
5. When you get to the description box, give it a description such as 1099 NEC offset under 26 U.S.C. § 139  
6. Record the full amount  of the 1099 NEC with a minus sign in front of the amount.  This will negate the 1099 NEC income.

@ryeclift