1099-NEC and SE tax Turbotax problem

I'm using Turbotax Premier. Received 1099-NEC. Entered the amount ($5625) in the 1099-MISC and "Other Common Income" section under "Wages & Income". Turbotax entered the income on line 8z of Schedule 1. Turbotax did not generate SE tax associated with the 1099-NEC (no social security or medicare taxes were withheld). Even if I try to force SE tax calculations (Other Tax Situations->Business Taxes->Self-Employment Tax), Turbotax reports "Currently you aren't required to pay self-employment tax", and even if I force it again, at the next page Turbotax reports "Our calculations show that you're not liable for self-employment tax based on what's entered in your return so far."

 

I received a notice from IRS, asking for the filing of Schedule SE, claiming that Social Security and Medicare Taxes are owed on the 1099-NEC amount. It makes sense to me.

 

But, where did I make a mistake in entering the information in Turbotax? I'd appreciate expert advice.

 

Thank you