Are capital credits from utility cooperatives entered on 1040?

Because it's a return of capital, it's not taxable.

This, from https://www.haywoodemc.com/content/frequently-asked-questions-about-capital-credits

Does the member have to report capital credits on tax returns?
Capital credits are a return of money paid for electricity in a previous year and are generally not taxable income for residential consumers. Commercial and industrial consumers should discuss any capital credits retirements with their tax advisers.

but what happens when they send out a 1099-misc?

A 1099-MISC is taxable, and must be reported on your return.  The IRS gets a copy as well, then matches up to your return.  If you don't believe it's taxable, you need to talk to someone at the co-op.

I received a 1099-MISC for a refund of capital credits $681.  When I talked to my coop about why I received it their response was that their tax advisor/attorney told them they must send 1099-MISC to any customers who were sent capital credit checks over $600 because that because they have no way of knowing which accounts are for at home business (ex: farms) versus which accounts are for personal/residential. Further, the coop told me that I should just specify via box 3 on your return that this was a 'non-taxable return of personal expenses'.

I do not find any such question or option in TurboTax to be able to specify "non-taxable return of personal expenses" when I entered the 1099-MISC.  Further, TurboTax is asking me several questions around where I worked to earn the $681 and others which have no applicability to this and it appears that TurboTax is using my 1099-MISC to trigger "Profit and Loss from a Business" tax forms to be included.

How do I properly enter this 1099-MISC in TurboTax so that it is non-taxable?