No, it is not income, but if you don't deal with it the IRS will think it's income and want to tax you on it. If the 1099-MISC is reporting "Other Income" it will be reported on Form 1040, Schedule 1, Line 8. To offset this "income" you can create another "Other Income" item for the same, but negative amount. To do so in TurboTax
I would report as "Other Income". To do so, while logged in to your return:
- Click on Federal
- Click on Income & Expenses
- Scroll to the bottom of the "Your income and expenses" page, and click on "Less Common Income"
- Click on "Show more"
- At the bottom of the page, next to "Miscellaneous Income..." click on Start/Revisit
- Other reportable income - click on Start, then answer Yes
- Give a description and enter amount