How do I add a link to Schedule C?

[victorialaurenge]

I was notified to "Check This Entry" for my 1099-NEC form. It's telling me to add a link to Schedule C. The instructions provided make no sense. I can't even find Schedule C on my 1099-NEC Form.

[AnnetteB6]

If double-clicking the box that shows Schedule C does not work, then your return may not have a Schedule C included yet.  There is not something you can type in that box to fix the problem, you have to enter a Schedule C.  

Income reported on Form 1099-NEC is not reportable directly on your tax return.  Just entering the information on that form is only one step.  Since it is self-employment or 'non-employee compensation' it must be associated with a Schedule C, even if there are no expenses being claimed. 

The information required for the Schedule C will include the type of business, the business name (or your name if there is no specific business name), the business address (or your address), etc.

Since income reported on Form 1099-NEC needs to be reported on Schedule C, the program is trying to tie these two forms together to be sure that it is reported correctly and on the right form.

Try going back to the section where you entered the Form 1099-NEC if you entered it on its own and delete that entry.  Use these steps:

• On the top row of the TurboTax online screen, click on Search (or for CD/downloaded TurboTax locate the search box in the upper right corner)
• This opens a box where you can type in “1099-NEC” and click the magnifying glass (or for CD/downloaded TurboTax, click Find)
• The search results will give you an option to “Jump to 1099-NEC”
• Click on the blue “Jump to 1099-NEC” link

This will bring you to the summary of all Form 1099-NEC that you have entered.  Click Delete or the trash can icon next to each one.

Next, you will re-enter the Form 1099-NEC as part of the Schedule C so that the income is reported directly as part of your Business Income and Expenses and within the correct form and section of your return.

Use these steps to go to the Schedule C section of your return.  

• On the top row of the TurboTax online screen, click on Search (or for CD/downloaded TurboTax locate the search box in the upper right corner)
• This opens a box where you can type in “schedule c” and click the magnifying glass (or for CD/downloaded TurboTax, click Find)
• The search results will give you an option to “Jump to schedule c”
• Click on the blue “Jump to schedule c” link

If you already have a Schedule C in your return, edit it and go to the section to Add Income.  This is where you will re-enter the Form 1099-NEC. 

If you do not already have a Schedule C in your return, follow the prompts and enter the information about your work/business for which you received the Form 1099-NEC.  Then continue through that section to Add Income and enter the Form 1099-NEC plus any other income you received for that self-employed business.  

Don't forget you can also claim expenses related to your business.

After you are finished, the error condition should be eliminated. 

[victorialaurenge]

Hi @AnnetteB6,

I tried following your instructions and deleted what you told me to, but now I'm having issues filling out Schedule C. The prompts it's giving me are oriented towards the owner of the business, of which I am not. I received nonemployee compensation and am trying to enter that information from my 1099-NEC. Please let me know how I can do this.

Thank you

[AnnetteB6]

In this case, you are the owner of your own self-employed business.  If you are receiving a Form 1099-NEC from a company that is paying you for your services or goods, they are not treating you as an employee.  They are treating you as an independent contractor.  Therefore, you are running your own business, providing your services or goods to the company that is reporting your income on Form 1099-NEC.

For more information, see the following TurboTax article: Am I an employee or an independent contractor?

@victorialaurenge