Thanks. That is exactly the workaround I ended up doing. Unfortunately, that approach caused me to upgrade from the free version of TurboTax to the Deluxe version in order to complete my very simple tax return. I ended up paying more for TurboTax than I paid in taxes. In addition, it does not allow me to enter all the 1099-NEC information. This will make it more difficult for the IRS to match my reported income to the income reported on the 1099-NEC.
Which brings me back to my original statement, "TurboTax is not correctly treating 1099-NEC income that is earned but not self-employment." I believe this is a bug in TurboTax that could easily be corrected with one more interview question during 1099-NEC entry. I understand that the 1099-NEC is a new form this year which TurboTax may not have fully implemented yet. The purpose of my original post was to report this bug to TurboTax in order to improve the product for next year. (And, perhaps get you to refund the fee I paid due to this bug.)
