If you receive a form 1099-NEC for a legal service plan, then you are not considered as self-employed and do not need to file a Schedule C.

In TurboTax, enter your form 1099-NEC and follow the interview until you arrive at the page titled Did this involve an intent to earn money?. Answer that this did not involve an intent to earn money. The amount will be reported as Miscellaneous income and will not be subject to Self-employment tax.

In TurboTax, there is a work-around. Although you may receive this income every year, say that you only receive the 1099-NEC only in 2020, not in previous years and not in 2021, you will then have the screen where you can say that it did not involve an intent to earn money

Thanks. But as I stated, I receive a 1099-MISC not NEC. so I'm not sure if this would work.

Can I file it under the NEC section even though they send me a MISC form?

As far as receiving it every year, we never know if it will be given to us the next year or not. Over the years it has come and gone so I could honestly say that I won't have it next year.

Include it in Other Income. It is not self-employment income.

• Wages & Income
• I'll choose what I work on
• Less Common Income select Start (or Update) for 
• Miscellaneous Income.
• Other reportable income and you can enter your own description(s) and amount(s).

Thanks.

I think my problem was I didn’t choose "I’ll choose what I work on"

I’ll try it next year

Thanks again