This is a bug in TurboTax's step-by-step mode where TurboTax is failing to mark the "Spouse" indicator when the Form 1099-NEC is entered under 1099-MISC and Other Common Income and Spouse is selected as the form recipient. Entering under 1099-MISC and Other Common Income also results in TurboTax not associating the Form 1099-NEC with the correct Schedule C (regardless of whether the Form 1099-NEC belongs to Taxpayer or Spouse).
Delete the Form 1099-NEC and reenter it under Business Items -> Business Income and Expenses (Sch C). In addition to associating the Form 1099-NEC with Spouse, entering it here will also result in it being associated with the correct Schedule C.
@Katie_B
