before you enter 1099-NEC, you should add a Schedule C so you can link them up.
This is TurboTax's way of linking the Form 1099-NEC to a particular Schedule C because an individual can have more than one business.
What is required in the box next to Schedule C on Box 1 of1099-NEC? Support Representative could not answer.
That box is used to link the 1099-NEC to the Schedule C that is associated with the business that received the Form 1099-NEC. If the Schedule C box is blank, clicking on that box will bring up a link button. Clicking the link button will allow you to link the Form 1099-NEC to an existing Schedule C or to a new Schedule C if one has not yet been created for this business.
Clicking the box does not bring up a Schedule C to link to. I'm sure I don't have something correct.
After clicking the box you must click the link button or just double-click the box:
I'm having the same issue. Nothing happens when I double click the link/drop down. This is the only screen that I can actually see the Schedule C form at all. Any suggestions?
See this recent error
I see, the problem is with the online version when Smart Check flags the error. The only thing that you might be able to do is delete the Form 1099-NEC and reenter it in the business section. When entered there, TurboTax will likely create the link to the business under which the Form 1099-NEC is being reported, eliminating the error, but I can't be certain since there are presently so many flaws in the implementation of this new form in TurboTax.
The problem I and many are having is that the link button you circled does not come up for us. In my situation I did Uber, Lyft to supplement income. This gave me opportunity to itemize. Being that itemization is higher then the standard and that I did some self employment work, I am required to file schedule C. I filled in all the info in Turbo Tax, however the linkage is not available. When I called support they came back "This is a known bug that they are urgently fixing"
Apparently the link button not appearing is a problem in the online version of TurboTax. There are two options:
I'm having the same problem. Here is the link to the TurboTax support page for this exact issue. Near the bottom, you can click to sign up for email updates as they resolve the problem. https://ttlc.intuit.com/community/tax-topics/help/why-can-not-link-my-1099-nec-in-turbotax-online/01/1857925#M7369
Currently there is a known issue when using TurboTax Online that is related to the program asking you to double-click to link to Schedule C.
Please review the article below and use the link in the article to enter your email address to be notified once this is resolved:
TurboTax: Why Am I Unable to Link my 1099-NEC?
Also you can review the information below for a possible steps to solve the issue.
Income reported on Form 1099-NEC must be reported on Schedule C, the program is trying to link these two forms together to be sure that it is reported correctly and on the right form.
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:
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:
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.
This didn't work. I already had my 1099-NEC under Schedule C, but deleted it and tried again. Still no way to link anything and I can't file without fixing this field. Will this actually be fixed or do I need to file somewhere other than turbotax? This is so unnecessarily frustrating.
With this new 1099-NEC, no, it is no easy task to navigate to populate the Schedule C. Here's a list of instructions I put together last night after seeing so many folks having this issue. I know it is a lot of steps, but the IRS created this form and this is the best most all of the tax preparation programs can do for now.
HOW TO POPULATE A SCHEDULE "C" WITH A 1099-NEC:
Try these steps:
- Select the tab at the top for Federal Taxes, then Wages and Income
- Scroll down the page a bit until you see "1099-MISC and Other Common Income Section"
- Under this section you will see "Income From 1099-NEC" - Click Start button then select "Yes"
- Near the bottom to the right click on "Add a 1099-NEC"
- Fill out the information per the information provided to you on the 1099-NEC - be sure not to omit anything
- Check the box next to "My form has other info in boxes 4-17" - this then opens up the rest of the page below that....
- Again, fill out the information accordingly as it is on the 1099-NEC you received (be sure not to miss anything);
FYI - click on this - "What if my form has other boxes filled in?" and the below statement will appear
- "If you have info in box 7, you might have to report income from this sale in the "Business Income and Expenses" section"
- Scroll to the bottom and click "Continue" - then follow prompts to fill in the appropriate information accordingly
- Ignore the stmt. "What if I got my 1099-NEC for something other than a job" - since you stated it was for work performed by you
- Click "Continue"
- Check off the box to the left of "None of these apply to me" and click "Continue"
- Check the box to the left of "Yes, I have expenses to deduct"
You are now at the Self-Employed 1099-NEC Income Page; Here you pick a name for your "business" or enter the one you've already chosen. It does not have to match the one on the 1099-NEC you received, but it should. As long as the SS# or FID# (whichever you used for yourself, NOT the payor's info.) match what the IRS has already received by the payor, that is fine. Click "Continue"
- Now, you want to click on "Edit" to the right of the 1099-NEC listed that you just entered. It is going to begin to walk you back through
the process, but now with more questions...Select "YES I have expenses to deduct" - click "Continue"
- Check the circle to the left of your business type/name listed there, then click "Continue".
This has now generated a full Schedule C for you. YEAH!
Now, at the very bottom of your Income Summary Page, click on "Done with Income"
NOW, go back to "Wages and Income" section, scroll down until you see "Business Items", and you will see "Business Income and Expenses (Sch C)" - you will see it says "Needs Review", so click on Update, then Edit (to the right of the 1099-NEC, and that is how you populate the Schedule C.
The system now will be prompting you to add a product in order to add the Schedule C to your return. All tax preparation software systems charge extra for this form. Unless you started out with the version that includes it, then you've already made that selection.
The turbo tax i am following does not sync with your directions. I am so confused!
The easiest thing for me, was to enter the sch C, since that is where the income goes, and add the income there. Enter the 1099-NEC inside the business and there is no linking necessary.
I wouldn't bother entering the 1099NEC. Actually you can just enter it as Other self employment income or as Cash or General income. You don't need to get a 1099NEC or 1099Misc or 1099K. Even if you did you can enter all your income as Cash. Only the total goes to schedule C.
How to enter income from Self Employment
I went through all of these instructions and still cannot create a schedule C or link to one. Taxes are due tomorrow and I can't get past this bug.
The tax due date has been extended to May 17, 2021 this year.
Here's another option. Instead of reporting your 1099-NEC on Schedule C, you can instead report it on Schedule 1. To do that, delete your 1099-NEC, and then report that income under "Less Common Income > Miscellaneous Income > Other reportable income". Then under the description, you can type in something like "Other Income from box 3 of 1099-NEC" and put in the amount. That way it ends up in Schedule 1 in your return under Part 1: Additional Income > Other Income. You no longer will be stuck in a loop as you proceed to filing.
I followed these steps and was able to successfully file my Federal return.
Sorry that's not right. You can't report a 1099NEC as other income. It is self employment income and only goes on Schedule C. You might get a letter from the IRS saying you didn't report it. For Schedule C you don't have to enter the actual 1099NEC, you can enter all your self employment income as CASH or general. Only the total goes to Schedule C line 1.
And anyway if there was a bug earlier (I don't remember) it has been fixed by now.
https://www.irs.gov/pub/irs-prior/f1099nec--2020.pdf
Don't know what form you are looking at but there is NO box 3 ... only box 1 & 4 on the new form.