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lisacarpenterpho
New Member

I am getting a "Needs Review" on my 1099-NEC. I filled in the boxes for additional income but it says I need to link to Schedule C. Anyone know?

I filled in the boxes required, but still getting the 'needs review'
5 Replies
AnnetteB6
Employee Tax Expert

I am getting a "Needs Review" on my 1099-NEC. I filled in the boxes for additional income but it says I need to link to Schedule C. Anyone know?

If your return does not include a Schedule C, then that is the problem that TurboTax is trying to get you to fix.  

 

Income reported on Form 1099-NEC is not reportable directly on your tax return.  Just entering the information on that form is only the first step.  Since it is self-employment or 'non-employee compensation' it must be associated with a Schedule C, even if there are no expenses being claimed. 

 

The information required for the Schedule C will include the type of business, the business name (or your name if there is no specific business name), the business address (or your address), etc.

 

That being said, 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.  Take a look at the TurboTax article below and use the link in the article to enter your email address to be notified once this is resolved.  

 

Why can't I link my 1099-NEC in TurboTax Online?

 

Alternatively, take a look at the additional information below for a possible series of steps to solve the issue.  

 

Since income reported on Form 1099-NEC needs to be reported on Schedule C, the program is trying to tie these two forms together to be sure that it is reported correctly and on the right form.

 

Try going back to the section where you entered the Form 1099-NEC if you entered it on its own and delete that entry.  Use these steps:

  • On the top row of the TurboTax online screen, click on Search (or for CD/downloaded TurboTax locate the search box in the upper right corner)
  • This opens a box where you can type in “1099-NEC” and click the magnifying glass (or for CD/downloaded TurboTax, click Find)
  • The search results will give you an option to “Jump to 1099-NEC
  • Click on the blue “Jump to 1099-NEC” link

This will bring you to the 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.

 

Use these steps to go to the Schedule C section of your return.  

  • On the top row of the TurboTax online screen, click on Search (or for CD/downloaded TurboTax locate the search box in the upper right corner)
  • This opens a box where you can type in “schedule c” and click the magnifying glass (or for CD/downloaded TurboTax, click Find)
  • The search results will give you an option to “Jump to schedule c
  • Click on the blue “Jump to schedule c” link

If you already have a Schedule C in your return, edit it 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 plus any other income you received for that self-employed business.  

 

Don't forget you can also claim expenses related to your business.

 

After you are finished, the error condition should be eliminated. 

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Saradand
New Member

I am getting a "Needs Review" on my 1099-NEC. I filled in the boxes for additional income but it says I need to link to Schedule C. Anyone know?

I would just like to know if i fixed the problem it was telling me to correct

LinaJ2020
Expert Alumni

I am getting a "Needs Review" on my 1099-NEC. I filled in the boxes for additional income but it says I need to link to Schedule C. Anyone know?

You are required to enter information in both 1099-NEC and Schedule C sections in the program.  You would start from the 1099-NEC section under "1099-MISC and Other Common Income".  You would then follow prompts to tell the program you are filing a Schedule C.  As it creates a Schedule C for you, you will need to go to the Schedule C portion separately to confirm your income amount, add related expenses and complete required information. 

 

In TurboTax online, here are the steps: 

  • Sign into your account, select Pick up where you left off
  • From the upper right menu, select Search and type in 1099nec and Enter
  • Select the Jump to 1099nec
  • Follow prompts to complete the section

Then 

  • From the upper right menu, select Search and type in schedule c and Enter
  • Select the Jump to schedule c
  • Next screen, "Your 2020 work summary" under your self employed business, select Review
  • Continue to enter related expenses and other required information

Generally, most taxpayers who receive a Form1099-NEC are considered as self employed by the IRS and required to pay self employment tax.  You will need to file a Schedule C reporting both income and any related expenses.  You will also need to file a Schedule SE to pay your self employment tax.  If you received the form for a non-self employment income, you will enter it as Other Income on your Form 1040.  Follow the prompts in the TurboTax program and it will take you there.  To learn more, click here: 1099-NEC

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pseat
New Member

I am getting a "Needs Review" on my 1099-NEC. I filled in the boxes for additional income but it says I need to link to Schedule C. Anyone know?

I have tried several different ways and have followed several suggestions for getting TurboTax to recognize my self-employed income from a form 1099-NEC.  I have tried the steps for putting the information in a Schedule C.  I have tried inputting the information into the 1099-NEC section.  Every time for the past few hours, TurboTax repeats that my self-employment income needs review.  Yet it does not tell me what needs to be reviewed or why it cannot complete this information.  This shouldn't take hours of my time trying to figure out a glitch or problem in the system.

JamesG1
Employee Tax Expert

I am getting a "Needs Review" on my 1099-NEC. I filled in the boxes for additional income but it says I need to link to Schedule C. Anyone know?

You may enter the 1099-NEC outside your self-employment activity or inside your self-employment activity.  If the 1099-NEC reports self-employment income, descriptions of the self-employment activity will have to be entered for either option.

 

Is the 1099-NEC the only source of self-employment income?  Is there more than 1099-NEC?

Entering the 1099-NEC inside your self-employment activity would be entered as follows:  

  • Down the left side of the screen, click on Federal.
  • Along the top of the screen, click on Wages & Income.
  • Under Your Income, click Show more to the right of Self-employment

At the screen Let's enter the income for your self-employment activity, choose Form 1099-NEC.  Click Continue.

 

Entering the 1099-NEC outside your self-employment activity would be entered as follows:  

  • Down the left side of the screen, click on Federal.
  • Along the top of the screen, click on Wages & Income.
  • Under Your Income, click Show more to the right of Other common income.
  • Under Other common income, click Start/Revisit to the right of Form 1099-NEC.  
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