Self employed

You either have business income to be reported on Schedule C or you have hobby income to be reported as Less Common Income.  If your 1099-NEC is for hobby income you can mark it as such, but you cannot deduct expenses from it.  You should consider the IRS opinion on hobby vs. business income to determine the correct area to report the form in TurboTax.

Per the IRS:

The IRS has specific rules regarding treating income as business or hobby income.  

To determine the difference the IRS considers these questions:

• Does the time and effort put into the activity indicate an intention to make a profit?
• Does the taxpayer depend on income from the activity?
• If there are losses, are they due to circumstances beyond the taxpayer’s control or did they occur in the start-up phase of the business?
• Has the taxpayer changed methods of operation to improve profitability?
• Does the taxpayer or his/her advisors have the knowledge needed to carry on the activity as a successful business?
• Has the taxpayer made a profit in similar activities in the past?
• Does the activity make a profit in some years?
• Can the taxpayer expect to make a profit in the future from the appreciation of assets used in the activity?

Also, the IRS presumes that an activity is carried on for profit if it makes a profit during at least three of the last five tax years, including the current year — at least two of the last seven years for activities that consist primarily of breeding, showing, training or racing horses.

@Gavmister