You can delete it from you entered it. Go to your business schedule and enter it inside the business section under income. This lets the program know it is definitely related to your contracting/ self-employment work.
Box 1 is for contractors that were paid in full with no taxes taken out. Now, you must pay the Medicare and Social Security tax that the employer normally pays. The only way to file the taxes is on the self-employed form. Which means you do a business return. You also get to write off any expenses you may have had in performing the work.
Self Employment tax (Scheduled SE) is automatically generated if a person has $400 or more of net profit from self-employment. You pay 15.3% SE tax on 92.35% of your Net Profit greater than $400. The 15.3% self employed SE Tax is to pay both the employer part and employee part of Social Security and Medicare. So you get social security credit for it when you retire.
The income goes on schedule C for self-employed. You will have to use the Deluxe version or above to add the form. If you want to claim any expenses related to the income, you have to go all the way to the top versions, Self-Employed or Home and Business.
See Self-Employed Individuals Tax Center or Industries/Professions for more help.
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