It is true that the state of Connecticut is not taxing it but unfortunately the federal government is. When you enter the 1099-NEC the way @ThomasM125 has detailed above it will add the amount to your taxable income and you will pay taxes on it (on your federal return) but you don't have to pay self-employment tax on it (which is the social security and medicare.
When you get to your Connecticut return you will also need to tell the system that this isn't taxable in Connecticut. Follow the prompts to exclude that money from income on your state return.
@Dongolfer
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