Received a 1099-NEC. I am not self employed. The state has a program for child care workers to get a retention payment. How do I enter? TT wants to create a sched C.

[trinitygrace18-]

TT also wants to charge SE Tax.

[TomK2023]

You can treat it as Other Reportable Income

Enter this Other Reportable Income:

1. Click on  Federal tab.
2. Click on Income & expenses.
3. Scroll down to Less Common Income.
4. Click on Start or Update button Miscellaneous Income, 1099-A, 1099-C
5. On the next screen (Let's Work on Any Miscellaneous Income), click the Start or Update button for Other reportable income.
6. Did you receive any other taxable income.  Click Yes.
7. Other Taxable Income, enter a description (e.g., State Child Care Retention Program Payment) and the amount.  Click Continue.
8. Click Done.

The income will be reported on Schedule 1 line 8 (z) with the description that you entered.