My suggestion, since it is Royalty Income that should have been reported on Form 1099-MISC in Box 2, Royalties, is to enter the amount reported on the 1099-NEC as if it was reported on Form 1099-MISC. The way TurboTax takes specific form (Form 1099-NEC) entries and flows them to the tax return (Schedule E) the only way (in the Online program) to get the royalty income on Schedule E is to enter the amount as if it were reported on a 1099-MISC.
Entering the income reported on a 1099-MISC instead if a 1099-NEC could end up generating a letter from the IRS because the Non-employee compensation wasn't reported on Schedule C. It's an easy explanation: The royalty income reported on Schedule E was incorrectly reported on Form 1099-NEC. It was properly reported on the tax return on Schedule E.
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