The message you are seeing in TurboTax may be trying to tell you that there is not a problem with the Form 1099-NEC itself, but it needs to be tied to specific Schedule C business (or Schedule F farm).
Form 1099-NEC is used to report self-employment or independent contractor income when you are being paid by a company not treating you as their employee.
Income from being self-employed or an independent contractor should be reported on Schedule C Business Income and Expenses.
So, to enter a Form 1099-NEC, you first need to create a Schedule C for your business and then enter the Form 1099-NEC within that same section of your return.
Use these steps to go to the Schedule C section of your return and get started.
- 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
Once you have started the Schedule C, 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.
For more details and information, take a look at the following TurboTax article: What is Form 1099-NEC?
@vanefuller
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