This should have been reported on a 1099-Misc instead of the 1099-NEC. You can enter it by selecting the following
- Federal
- Income and Expenses
- Scroll down to Less Common Income and click Show More
- Start next to Miscellaneous Income
- Start next to Other Reportable Income
- For description refer to the 1099-NEC from the county
This will put it on line 8z of your schedule 1 as other income.
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