TurboTax made some changes to the 1099 interview as a result of the introduction of the new 1099 – NEC form, and I don’t particularly like the changes and I have not studied them to see how they work.
if you don’t otherwise have a schedule C business, then I would try deleting the 1099 – MISC and enter it again. As part of that interview, you may get testing questions asking if this is similar to your regular business, if it was done for a profit motive, if you will be doing similar work in the past or the future. Those testing questions are designed by the IRS to determine if you need a schedule C for business. Since you know that you do not use a schedule C for this income, you can answer all the questions as “no”. Technically, the part of the settlement that is not wages is not like your regular job and so you should answer no to clear those questions.
Maybe someone else can help you with the new interview. @macuser_22 @DoninGA
