Income reported on Form 1099-NEC must be included on Schedule C. If you entered the 1099-NEC but did not complete the Schedule C, you will get this error.
Revisit the section where you entered the Form 1099-NEC if you entered it on its own and delete that entry, by following these steps:
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Open TurboTax.
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On the top right corner of TurboTax online screen, click on Search (or for CD/downloaded TurboTax locate the search box in the upper right corner).
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Type in “1099-NEC” (or for CD/downloaded TurboTax, click Find),
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Click on “Jump to 1099-NEC”
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Click on the blue “Jump to 1099-NEC” link
This will bring you a summary of all Form 1099-NEC that you have entered. Click Delete or the trash can icon next to each one.
Next, you will re-enter the Form 1099-NEC as part of the Schedule C so that the income is reported directly as part of your Business Income and Expenses and within the correct form and section of your return.
Follow these steps to go to the Schedule C section of your return:
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On the top right corner of TurboTax online screen, click on Search (or for CD/downloaded TurboTax locate the search box in the upper right corner).
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Type in “schedule c” (or for CD/downloaded TurboTax, click Find).
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Click on “Jump to schedule c”.
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Click on the blue “Jump to schedule c” link
If you already have created a Schedule C in your return, click on edit and go to the section to Add Income. This is where you will re-enter the Form 1099-NEC.
If you do not already have a Schedule C in your return, follow the prompts and enter the information about your work/business for which you received the Form 1099-NEC. Then continue through that section to Add Income and enter the Form 1099-NEC along with any additional income you received for that business.
Once you have completed this, the error should be eliminated.
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