I have a few clients that work for the county appraisal office. Their pay is reported on 1099-NEC and claim that they are exempt from self-employment tax. I asked for proof, and they produced a letter from the Taxpayer Advocacy Service that backed up their claim.  

I entered the income as Other Income, Sch 1 Line 8. Line 8 has a worksheet, then entered on Line 3 e (Non Employee Compensation  from 1099-NEC). There are other categories on the worksheet that might fit your situation.

I've been doing this for 3 years, so far nothing from IRS.