I got a loan for solar that included a payoff to the old solor company. the new solar company sent it to me as a 1099 nec instead of the old company. the new company said because it was a payoff they wont change the 1099nec. even though it was part of my loan
When you report the 1099-NEC the interview will give you the opportunity to say that the funds were not income from a business.
You can report the income as "Other" income, as mentioned by @Bsch4477, then enter a negative adjustment to income to credit it back off of your return.
You can make that adjusting entry in TurboTax as follows:
1. From the Federal menu in TurboTax find Wages and Income
2. Find Less Common Income
3. Choose Miscellaneous Income, 1099-A, 1099-C
4. Choose Other Reportable Income
5. Enter a description of the adjustment (mis-reported income for instance) and the adjustment as a negative number
Choose the situation for the payment stating that the money is not earned as an employee or self-employed person so it will show up as "Other" income on your tax return: