Self employed

Depending on how you entered the Form 1099-MISC, it may be that TurboTax thinks that you should have a Schedule C. If that's not the case, and you have correctly entered the income on Schedule E, you could try deleting the form(s) for Schedule C that you are being prompted to complete.

To delete a form, in TurboTax Online:

1. Open or continue your return in TurboTax.
2. In the left menu, select "Tax Tools" and then "Tools".
3. In the pop-up window Tool Center, select "Delete a form".
4. Select "Delete" next to "(name of form, e.g. Schedule C) " and follow the instructions.

Enter the 1099-MISC in the place that best represents the type of income received. To enter a 1099-MISC for royalties. Box 2, in TurboTax Desktop, go to Wages and Income, and select Rental Properties and Royalties. Answer the interview questions. This section will provide entry screens for Royalties reported on Form 1099-MISC.

Taxpayers should normally report royalty payments as income on Part I of Schedule E (Form 1040), Supplemental Income and Loss. Income reported on Schedule E is usually not subject to self-employment tax.

Royalties from copyrights, patents, and oil, gas and mineral properties are taxable as ordinary income. You generally report royalties in Part I of Schedule E (Form 1040 or Form 1040-SR), Supplemental Income and Loss.  However, if you hold an operating oil, gas, or mineral interest or are in business as a self-employed writer, inventor, artist, etc., report your income and expenses on Schedule C (see this IRS webpage). You would be able to deduct any related expenses and you may need to pay self-employment tax on net profits.

If the payment is for something that doesn't fit either the description of a rental payment (lease bonus payments are also considered rental payments) or a royalty payment, you can make a separate 1099-MISC entry under Wages and Income, Income from Form 1099-MISC for just the Box 3 item. Indicate that it is a one-time payment and not earned with profit intent (so that it doesn't get misclassified as self-employment income).

@herve01