I was looking at the same situation the other day, although I have not studied it. It appeared to me that if you enter a 1099-NEC in the standalone section for 1099‘s, that a schedule SE for self-employment tax and a schedule C are not generated. For self-employment income, you need to be in TurboTax self-employed online. Then look up the screen of death from the 1099 section where are you will see a separate section for entering a small business income. You need to create a business for your spouse and enter the income in the business, and then delete the duplicate 1099 from the 1099 section. That will create a schedule C and will allow you to list expenses, if you have any, and will add the self-employment tax to your tax bill, but will make the income qualified for a Roth IRA. Note that because of the deduction for self-employment taxes, the entire amount of your wife’s 1099 income will not count as earned income, only 92% of it. So her Roth contribution limit would be the $600 or so of bonus +92% of her 1099 income.
I will try to follow up with this with the moderators. I don’t claim to be an expert, but it appears that TurboTax has created two different ways to enter a 1099-NEC, only one of which generates a schedule C.
