This is done in 2 parts
Part 1: Enter your caregiver income using the following steps (do not enter the Form 1099-NEC).
This will eliminate adding self-employment tax which does not apply. Keep the 1099-NEC with your tax documents.
Part 2: Follow these steps to remove the income from your tax return.
When you return to the Wages & Income page, scroll to see the negative income beside Miscellaneous Income, 1099-A, 1099-C; This will remove the income on your return for the IHSS or other payments received by an individual care provider under a state Medicaid Home and Community-Based Services Waiver program.
Thus by doing part 1, your AGI still continue to report your income to IRS and part 2 eliminates the income you received thus your taxable income does not increase because of this receipt.
The link below provides detailed instructions for this entry of your Medicaid waiver payments whether on W-2 or Form 1099-NEC.