1099NEC from Apple as app developer, but asked to create Schedule C?

[samsongli]

Hi, last year I received 1099NEC, reason being I was doing app development for iOS years ago and there was a dispute for many developers, the payment was made last year and hence the 1099NEC. When I entered 1099NEC into TurboTax, it asks me to add a Schedule C business, which I do not have. 

[PattiF]

You may need to file a Schedule C for this income. To clarify this, is the payment from a lawsuit that was filed for not being paid for work that you did years ago?

[samsongli]

Thanks for answering. No I don't work for Apple, like many other app developers I worked independently to develop my iOS app. Apple shared profit with app developers like us, and we do not need to have a business for this work or receive payment. The lawsuit was about compensating the shared profit for the previous years. I am no longer developing that app.

[DMarkM1 · Accepted solution]

It seems the pay was for work you performed as an independent contractor in the past.  Having said that, if it was a one-time occurrence or sporadic (like a hobby) you can enter without a Schedule C using the steps below.  

However, if you develop apps even as a side job to make money then it is a business and you would enter the form as self-employment to generate the Schedule C.  You would also be able to enter any expenses to offset income. 

If this was not a business start by deleting the 1099-NEC and any business entries associated with that form to get a fresh start.

Then,

1. "Wages and Income"
2. "Other Common Income"
3. "1099-NEC"
4. Enter the form information
5. "App Development" as a description
6. Select "This is not money earned as an employee or self-employed....it is sporadic..."

The income will be reported as other income on Schedule 1, line 8z.