1099-misc

They only way you would be allowed to claim deductions against the income is if it was considered self-employment and reported on a Schedule C.  If the income was reported as prize-winnings, it would be classified as Other Income and not eligible to be reduced by any deductions.  

You will need to provide more information about who actually paid the money and what you did to get it. 

If your employer paid you a bonus, they are supposed to report it on your W-2.  There is a form you can file in turbotax to fix this (not self-employment schedule C) but you can't deduct any expenses.  But it would be better to have your employer fix your W-2.

If the prize was awarded by a third party, then it might be compensation for work performed or it might be a prize.  Prizes are not subject to the extra 15% self-employment tax but you can't deduct expenses.  Compensation for work or services would be reported on schedule C and you can deduct expenses but you pay extra tax on the net profit.  And just because the money might have been listed in box 7 of the 1099-MISC doesn't mean you must report it as compensation...it depends on what you actually did to get the money.

The fact that TT said you may be able to deduct expenses probably means TT has classified the income as self employment.

After completing the 1099-Misc interview, you need to initiate the business interview. 

In TurboTax (TT), enter at:
- Federal Taxes tab (Personal in  Home & Business)

 - Wages & Income

Scroll down to:

- Business Items

   - Business Income & Expenses (Sch C)