My spouse received 1099NEC from University's Grant

My wife received $5000 federal grant from the University during 2024. We received 1099NEC for it instead of having the grant/scholarship on 1098T ($0 on 1098T).

 

I tried to search for an answer, but I am still not sure. I inputted the 1099NEC and chose "this is not money earned as employee or self-employed individual. After those steps, my tax return went from +1100 to +571. Does it seem right that we have to pay ~$600 in taxes for the federal grant?

 

Also, under education summary where I input 1098T and other educational expenses, there is a field for Scholarships/Grants. Do I need to put $5000 there too? When I put it there, it also decreases my tax return.

 

Just wanted to make sure I file this right and not decrease any tax returns.