If the income is not taxable then you will report the income in TurboTax and then do an entry to back out of the income by entering it as a negative amount.
Enter the income in Federal, Wages and Income
Less Common Income
Miscellaneous Income
Other Reportable income
Your first entry will be the 1099-MISC fields
Then make another entry with the same information and label it "Cancel Out Tax on 1099-MISC"
In the second entry, put the same amount of money but put a minus sign in front of the number so it will be negative and cancel out the taxes on the 1099-MISC.
Qualified disaster relief payments include payments made to an individual for “reasonable and necessary personal, family, living or funeral expenses as a result of a qualified disaster.” It also includes payments made on behalf of the individual.
