Yes, it does matter. You can't enter a negative amount for Form 1099-NEC, so you would need to report a 1099-MISC with a negative amount to offset the 1099-NEC income. Both entries would be reported on Schedule 1 Line 8 (in different places). This is generally ordinary income (like wages) but if the two entries offset each other, it wouldn't affect your taxable income.
More importantly, rental income (reported on Schedule 1 Line 5) is passive and subject to passive loss rules. Though, again, the transactions result in a net zero.
Basically, you need to decide which entry accurately reflects the income and expense for this situation.
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