First, you need to delete the 1099-NEC that you have entered, The reason that you are receiving a QBI deduction is that the system is treating this as self-employment income, which it is not. So click the little trashcan to the right of the 1099-NEC that you have already put in.
Then, you need to re-enter the 1099. Pay special attention to the questions as you go along. On the third screen it says "Does one of these uncommon situations apply?" at the top. The 4th selection says "This is not money earned as an employee or self-employed individual, it is from a sporadic activity or Hobby (this is not common)." Tick that box.
This was a one time benefit paid to you as a first responder (which is as sporadic as it gets). It was certainly not earned as an attempt to earn money. So there should be no self-employment taxes paid on it.
@Msnatalieann
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