I am a first responder in the state of Florida, and I received a 1099-NEC for a payment that was tax free. Where does this go? It does not relate to a business.

To avoid issues with the IRS, you need to include Form 1099-NEC on your return. In this case, you can report the income then enter a negative adjustment to Other Income to cancel it out.

Enter the form 1099-NEC in the Income and Expenses section of TurboTax, then Other Common Income, then Income from form 1099-NEC. Mark this as sporadic income (not related to a business).

Follow these instructions to enter the adjustment:

1. Go to the Income and Expenses section of TurboTax.
2. Choose Less Common Income.
3. Choose Miscellaneous Income, 1099-A, 1099-C.
4. Choose Other reportable Income.
5. Enter a description and the amount (as a negative number) of your excluded income.